Union Bank posts impressive half year performance
The first half of 2015 was a crucial period with Union Bank
restructuring itself, said Director and CEO, Union Bank, Indrajit
Wickramasinghe.
"I am pleased to see the results of the many strategic development
initiatives and investments gathering a strong growth momentum and its
results evident with the performance the bank as highlighted as at June
2015," he said.
"The growth trajectory that is envisioned will deliver continuous
value propositions and benefits to our customers for greater banking
convenience. We have ensured greater process efficiencies and aligned
our teams to deliver the best value and service. We will continue to
deliver on our premise of banking convenience and will also debut
several new products shortly," he added.
The Bank recorded a significant increase in revenue for 1H15, in
comparison to the corresponding period in 2014. Total operating income
for 1H15 grew by 37% YoY to Rs 1,350 million. The primary reason being
the strong growth in loans and advances, along with better management of
yields and the quality of the loan book.Net Interest Income of the Bank
grew by 43% YoY, to Rs.1,039 million for 1H15. Fees and Other operating
income grew by 21% in comparison to the corresponding reporting period.
The Group recorded a significant increase in revenue for 1H15 in
comparison to the corresponding period. Total operating income for 1H15
grew by 28% YoY to Rs 1,617 million.
This is mainly due to the strong Net Interest Income growth of 51%.
Reflecting a significant improvement in the quality of the portfolio,
impairment charges of the Bank reported a reduction of 43% in comparison
to the corresponding period. Correspondingly Group reported a 25%
reduction in impairment charges for the period.
The Bank reported a profit before tax and financial services VAT of
Rs.135 million for the period. This is a 291% increase in comparison to
the previous period. Furthermore the Bank reported a Net profit after
tax of Rs.60 million for the 6-month period.
This is despite the significant investments that have been made,
which are in line with the new strategic initiatives.
The Group reported a profit after tax of Rs. 82 million in comparison
to Rs. 58 million in 2014. |
