Union Bank records interim dividend for 2012

The Chairman and Board of Directors of Union Bank of Colombo PLC (UBC) recorded an interim dividend of 15 cents per share. Alex Lovell, Chairman of UBC said that 2011 concluded on a positive note and 2012 will see the consolidation of these growth factors. He said that Union Bank's focus on Small and Medium Enterprises (SME) sector which has given the Bank a well- defined competitive edge in an industry that has to vie with 26 commercial Banks.

Lovell said, "Going forward, adding the stimulus to our SME focus, UBC will continue to evolve as a technology driven Bank. The Bank's focus on an IT driven channel strategy will further support its reach expansion across Sri Lanka".

"UBC's transformation from a small player to a prominent dynamic player within the Banking industry by 2012 has been remarkable. Showcasing a classic turnaround scenario, its pace of growth and transformation during a short period of time has been significant.

UBC has continuously recorded growth in profitability and posted a net profit of Rs 308m in the financial year 2011 and a group pre-tax profit increase of 28 percent during the first quarter of 2012.

UBC topped the capital adequacy ratio and equity/assets of local licensed commercial Banks and has surpassed the regulatory requirements set by the Central Bank and has adequately covered up to the 2015 requirement of Rs5b. UBC is conscious of the transition to BASEL 111 and have aligned its future strategy in meeting such requirements.

UBC has a BBB/P3 rating with long-term outlook stated as stable by RAM Ratings (Lanka) Ltd and was also selected to the most valuable corporate brands in Sri Lanka by Brand Finance Sri Lanka in 2012. UBC has a rapidly expanding branch network of 34 branches with diversified business interests including Unit Trusts with the acquisition of National Asset Management Limited and The Finance and Guarantee Company Limited.