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
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,
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