Union Bank records Rs 131 m PAT

The Union Bank of Colombo PLC with its Strategic Investment Partner ShoreCap II Limited invested Rs. 1.15 billion to acquire a controlling interest in UB Finance Company Limited in November 2011, making it the first finance company to be owned by a commercial bank in the private sector. Union Bank and ShoreCap II collectively hold an 82% stake in the company.

UB Finance is held as a strategic investment of Union Bank and has been restructured, rebranded and re-launched in the past year recording a net profit after tax of Rs. 131 million in the financial year ended March 31, 2013. The UB Finance total asset base and net worth as at March 31, 2013 was Rs. 2 billion and Rs. 524 million. The company which is licensed by the Monetary Board of the Central Bank of Sri Lanka, is managed by a team of young professionals from the industry.

The company operates through a network of seven branches and its main lines of business include fixed deposits and savings accounts, asset backed financing such as leasing, hire purchase and loans, working capital financing such as factoring and invoice discounting and real estate solutions.