Union Bank's PAT up 96 percent in 1H

Union Bank's after tax profit for the first half of 2009 has recorded a tremendous increase of 96 percent over the corresponding period last year.

The Bank said that the significant growth achieved in the first half of the year can be considered extremely encouraging taking into consideration the difficult operating conditions in the country. The Bank attributes this impressive performance to increased revenue and streamlining of expenditure.

The Bank's interest income increased to Rs 951.8 mn for the six months ended June 30, 2009 compared to the corresponding Rs 788.6 mn in the preceding year, an increase of 20.7 percent.

Other income mainly arising from commissions, foreign exchange and investments amounted to Rs 99.9 mn for the six months ended June 2009 compared to Rs 81.6 mn for the corresponding period in the preceding year. Although interest expenditure increased from Rs 615 mn for the six months ended June 2008 to Rs 739 mn for the first half of 2009, the Bank's net interest income increased to Rs 213 mn for the first half of 2009 as against Rs 173 mn for the first half of 2008.

After providing for overheads amounting to Rs 205 mn, the Bank made a profit before corporate taxes and VAT of Rs 87.5 mn approx. for the first half of 2009 compared to Rs 54.8 mn up to June 2008. Post tax profit for June 2008 amounted to Rs 32.5 mn which is almost double that of the corresponding achievement in 2008 which was Rs 16.6 mn.

One of the most prudently managed and stable banks in its league, the Bank receives its guidance from a Board of Directors comprising leading corporate personalities and eminent professionals in the banking, legal and ICT sectors.