Equity Analysis /
Sri Lanka

SRI LANKA BANKS: HNB still our preferred play

    Asif Khan
    Asif Khan

    Banks Analyst - South Asia

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    Tellimer Research
    21 September 2017
    Published byTellimer Research
    Net interest margins have peaked along with interest rates. Interest rates in Sri Lanka have increased over the last two years. We believe that rates have peaked but will stay here for some time, after which they will come down by about 150-200bp. Once they start to decline, banks’ net interest margins will come under pressure and are expected to drop by about 20bp from 2018-2021f.