Union Bank Group pre-tax profit up 28%
Union Bank reported a noticeable upturn in its performance for the
period ended March 31, 2012.
The Bank's operating Profit before VAT and corporate tax improved by
21.4 % recording Rs 142.7 Mn up from Rs 117.5 Mn during the period ended
March 31 2011. Net Interest Income increased to 295.7 Mn highlighting a
24.6% increase over the preceding year. Similar growth was also achieved
in the Banks core activities. Gross loans and advances increased by
11.9% during the three months to reach Rs 19.2Bn recording a 64% growth
in comparison to March 2011. Total deposits increased to Rs 20.0Bn as at
31st March 2012. Overall, the group highlighted a total turnover of Rs.
887.6 Mn and an operating profit on ordinary activities before tax of
Rs. 158.6 Mn a 30 % increase over the corresponding period of last year.
Director / CEO of Union Bank Anil Amarasuriya, expressed satisfaction
over these results and stressed that these were achieved against
challenging market conditions. He emphasised on the Bank's future
potential and its ability to emerge as a strong performer in the
Industry.
With the predicted high economic growth rates, the banking and
finance sector will contribute positively in driving the country's way
forward.
In this context, Union Bank has leveraged on its strong financial
position and has comfortably surpassed the regulatory requirements on
capital adequacy placed by the Central Bank of Sri Lanka and is already
in excess of the Rs 5 bn mark required by 2015 enabling more space to
continue bank operations safely and to remain steady and resilient.
Following the Banks successful Initial Public Offering, the Bank is
now strategically positioned to embark on an aggressive growth strategy
and its expansion plan to become a Financial Power House has taken
positives strides in short period of time with the rapid expansion of
its branch network and related diversifications, with the acquisition of
NAMAL Sri Lanka's premier Asset Management company and the recent
acquisition of The Finance and Guarantee Company Ltd, a pioneering
finance company established in 1961. These acquisitions fits in well
with our expansion policy to increase focus and growth in the SME sector
and earmark as value additions to our channel strategy to further
penetrate the Small and Medium enterprises segment Amarasuriya said.
Union Bank also unveiled its new state of the art Head Office on
January 6 2012. Governor of the Central Bank Ajith Nivard Cabraal opened
the new premises at Galle Road, Colombo 3. The new head office marked
another momentous occasion for Union Bank, bringing together a
combination of state of the art technology, competitive financial
solutions and superior service delivery under one roof.
As the preferred Bank for the Small and Medium Enterprises, Union
Bank continues to add value in strengthening the sector and the opening
of the new head office further signifies its pledge in delivering
flexibility and efficiency to the Bank's customers to fuel their growth
to greater heights.
Amarasuriya further said that the Bank is investing significantly in
brand building and network expansion as well as value additions to its
existing product portfolios and launching of new products to deliver a
unique value proposition providing superior service delivery to a wider
customer base as well as penetrating new markets.
The Bank's branch network now stands at 32 with seven branches in the
North and the East. Two new branches will be opened this month in
Amabalangoda and Chilaw.
|