Union Bank PAT grows 221% in 1Q

Maintaining the momentum gained during its historic IPO, the Union Bank posted a pre-tax profit of Rs. 117.5 million for the first quarter of 2011, confirming its strong position in the banking sector as one of the fastest growing banks.

The results indicate a 97.6 percent growth when compared to the corresponding period in 2010.

Director/CEO Union Bank Anil Amarasuriya

Director/CEO Union Bank Anil Amarasuriya said that the Bank has completed one of the most outstanding quarters in its history.

It opened four new branches increasing its network to 26 with the newest branch opening in Piliyandala on May 10.

There are plans to open more branches, which will see the Bank compete on many different levels.

The Union Bank acquired a 51 percent stake in National Asset Management under its management arm and plans to make its presence felt in the financial industry with acquisitions that will enhance growth, said Amarasuriya.

The first quarter also recorded an increase of 66.2 percent in NII, while showing a 48 percent growth in non-core income categories.

The expansion phase reflected an increase of 44 percent in its overhead expenses, while PAT showed a growth of 221 percent when compared to last year.

The total asset base of the Bank expanded by 9.5 percent, registering Rs 20,24 million at end of quarter.

The period also saw a growth of 17.5 percent in loans and advances and an increase of 6.6 percent in the Bank's deposit base.

The infusion of equity through the record breaking IPO netted in a growth of Rs 403.2 million, indicating an augmentation of 8.9 percent in total equity during the quarter.

The Bank has recorded one of the strongest Debt/Equity ratios in the banking industry, at 3.0 times. Confirming its stability, the Bank's net NPL stood at 5.51 percent while net assets per share was at 14.15 percent, reaffirming its growth and potential.

The first quarter of 2011, in the immediate after-glow of the IPO, has placed Union Bank in a sturdy position, poised for expansion and consolidation.