The first half of 2017 saw Union Bank attaining strong core banking and profitability growth.
Advancesof Union Bank grew by 16% while the Bank showed a very strong 94% growth on Results from Operating Activities, recording Rs.364Mn in comparison to Rs.188Mn in the prior period, reflecting the successful implementation of the Bank’s strategic initiatives. This was mainly attributable to the healthy 60% increase in Net Interest Income (NII) which rose toRs.1,561 million for the period.
Reflecting the results of the Bank’s long term strategic initiatives to improve fee related income, Net Fee and Commission Income grew to Rs. 319Mn, recording a strong 27% increase over the period.
A change in the Asset Mix of the Bank brought about a decline in the Net Trading Income as funds were shifted to Interest Earning Assets from Investments in Units.
Total Operating Income showed a sharp growth of 30% YoY to Rs.2,115 million, which was a direct outcome of the increase in core banking income.
In order to support the strong growth in the Balance Sheet, operating expenses of the Bank increased to Rs. 1,619Mn, reporting a 14% growth YoY, in line with the Bank’s strategic growth and expansion focus along with its investment in Human Capital development.
The Bank’s Profit Before Tax and VAT grew by a robust 55% to Rs.393 million even though its share of profits from subsidiary companies were lower by Rs.36Mn YoY.
Total Assets of the Bank grew to Rs. 103Bn, 11% growth YTD. Contributing to the same, the Loans and Receivables of the Bank grew to Rs. 64Bn,16% growth YTD. Customer Deposits grew by 21% to Rs.62Bn YTD.
The Bank’s Total Capital Adequacy Ratio as at 30thJune 2017 was 20.8%, well above regulatory requirements.
The Group comprising Union Bank, NationalAsset Management Ltd and UB Finance Company Limited, recorded a healthy 52% increase in Net Interest Income to Rs. 1,868Mn.
“We will continue to build on this core banking performance and balance sheet growth while ensuring that we continuously enhance the banking experience of our wider Corporate, SME and Retail Banking clientele within the remainder of the year,” Director/Chief Executive Officer of Union Bank, Indrajit Wickramasinghe said.
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