In the third quarter of 2017, Union Bank continued its strong growth momentum, adding further traction to its strategic business focus of core banking growth and profitability.
As a result of focused efforts on portfolio expansion, the Bank’s Loans and Advances grew by 22% Year to Date (YTD). The Net Interest Income (NII) rose to Rs 2,318 mn in the 3rd quarter of 2017- an impressive increase of 40% year on year (YoY). During the period under review, the Bank continued to focus on improving NII through prudent management of the net interest margin (NIM) coupled with Total Asset growth.
Union Bank’s well executed strategic initiatives for Fee Income growth continued throughout the reporting period, resulting in a healthy growth of Net Fee and Commission Income to Rs 495 mn, a 21% increase YoY. This can be mainly attributed to the increase in trade and remittances related fees, deposit related fees as well as loan processing fees collected during the reporting period.
The Bank’s treasury performance was notable and recorded Rs. 106.1 mn surge in capital gains YoY, which is a significant increase of 88%.
A change in the Asset Mix of the Bank resulted in a dilution of the Net trading income as funds were shifted to Interest Earning Assets from investments in units,
triggering a resultant decline in the income from investment in units by 45% YoY to Rs. 193 mn. Consequently, the total trading income decreased by 15% to Rs. 300 mn. Other operating income fell by 24% YoY to report Rs. 182 mn, largely due to the decline in foreign exchange income.
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