Union Bank ups profits in 2Q
Union Bank reported a significant upturn in its performance for the
half year ended June 30, 2011.
The Bank's after-tax profits improved by 157.3 percent to record Rs
128.7 million up from Rs 50 million of period ended 30 June 2010, whilst
pre-tax Profits increased by 56.6 percent to Rs 206.8m in comparison to
the corresponding period of last year. Net interest income increased by
35.9 percent to 154.7 million over the preceding year.
Similar growth was also achieved in the Bank's core activities.
Gross loans and advances increased by 28.2 percent during the six
months to reach Rs 12.9 billion whilst total deposits increased to Rs
14.8 billion as at June 30, 2011.
Gross non performing advances ratio improved to 6.05 percent from
9.19 percent of June 2010. Overall, the group highlighted an after tax
profit of Rs. 132.7 million. Union Bank Director and CEO Anil
Amarasuriya expressed satisfaction over these results and stressed that
these were achieved against a back drop of declining interest rates.
He emphasized on the Bank's future potential and its ability to
emerge as a strong performer in the industry.
Following the Bank's successful Initial Public Offering, the Bank is
now strategically positioned to embark on an aggressive growth strategy
in addition to comfortably surpassing the regulatory minimum capital
requirements for commercial banks.
Amarasuriya said the Bank is investing significantly in brand
building and network expansion as well as value additions to its
existing product portfolios and launching of new products in order to
provide superior service delivery to a wider customer base and
penetrating new markets.
The Bank's primary focus is to be the preferred Bank for the SME and
Retail sectors, he further added.
The Bank's branch network now stands at 26 with seven branches
located in North and East with three new branches opened during the
second quarter.
In furtherance of its new strategic direction and expansion policy
Union Bank embarked on a diversification plan which highlighted positive
strides in a short period of time with the Bank acquiring Sri Lanka's
premier asset management company-National Asset Management Limited in
February 2011 and recently receiving approval from the Central Bank of
Sri Lanka to acquire TF&G a registered finance company.
This acquisition fits in well with our diversification and expansion
policy to increase focus and growth in the SME sector, hence we earmark
this acquisition as yet another stepping stone to further penetrate the
small enterprises segment, Amarasuriya said. |