Powering Ahead on Strong Credit Momentum 📈 Strong Core Earnings Momentum EPS reached LKR 20.39, supported by 30% YoY NII growth to LKR 34.2bn, a healthy 4.4% NIM, and 7% QoQ loan growth. Strong core income and non-fund-based income helped offset higher impairment provisions. 💳 Robust Credit Growth Outlook We expect 22% credit growth in 2026E, supported by strong 15% YTD growth in 1H, with growth moderating thereafter to 13% over 2026–2028E. NIM is expected to remain broadly stable at around 4.7%. 📊 Earnings to Stabilize We forecast PATMI at LKR 44.3bn in 2026E, with earnings expected to return to steady growth from 2027E, reaching LKR 54.8bn by 2028E. Normalized credit costs, resilient NII and continued credit expansion underpin the medium-term earnings outlook. 🎯 Valuation & Recommendation: HNB.N TP: LKR 468.00 (+22.6%) | BUY HNB.X TP: LKR 390.00 (+18.3%) | BUY ⚠️ Risks: (1) Prolonged US–Israel–Iran conflict (2) Credit slowdown (3) Monetary tightening (4) Policy uncertainty