Union Bank post-tax profits up 72 percent

Union Bank has recorded a remarkable growth in its profitability for the year ended December 31, 2008 with pre-tax profits increasing by 84 percent and post-tax profits posting a growth of 72 percent, compared to 2007.

These results were possible largely due to substantial increases in the Bank’s earnings by way of interest and non-interest income. Net interest income increased by 50 percent whilst non-interest income comprising commission and fee income and foreign exchange earnings improved by 19 percent YOY.

The return on assets (ROA) shows a commendable 0.94 percent pre-tax, as against the preceding year’s comparative figure of 0.63 percent.

The Bank also made progress in enhancing its Deposits and Advances portfolio during 2008. Total Customer Deposits grew by 17 percent, while Advances increased by 26 percent YOY.

These growth statistics compare well with the industry growth averages. The Bank was also successful in attracting additional capital during the year, and successfully met the minimum regulatory capital requirements required by the Central Bank of Sri Lanka.

The Bank has a network of 14 well established branches in Colombo, as well as in Nugegoda, Moratuwa, Ja-Ela, Negombo, Kandy, Kurunegala and Matara, through which an extensive range of personal and corporate banking facilities and other financial services such as pawning and leasing are extended.

The Bank since its inception, has been a leader in IT driven banking solutions and branches are linked through a real time on line network.

Web based products such as bank roaming, internet banking as well as telephone banking are some of the facilities on offer to its customers.

Customers of Union Bank also enjoy the benefit of having access to Sampath Bank’s islandwide network of ATMs numbering approximately 160 at present for their local cash withdrawal requirements.

Customers are also able to withdraw from over a million ‘Cirrus’ enabled ATMs locally as well as worldwide.

Union Bank’s attractive and innovative deposit products include the Piyawara Minors Savings Scheme, the ‘Weekly Interest’ Fixed Deposit Scheme and the recently introduced ‘UB Ultra Saver’ Account.

The bank focuses largely on lending to the Small and Medium Enterprises Sector (SME) and offers a full range of lending products including leasing facilities.

Its personal credit facilities include competitively priced pawning services.