Union Bank group pre-tax profit up by 28%

Further highlighting its strong position as one of Sri Lanka’s fastest growing banks, Union Bank reported a noticeable upturn in its performance for the period ended March 31 ,2012.

The bank’s operating profit before VAT and corporate tax improved by 21.4 % recording Rs 142.7 million up from Rs 117.5 million for period ended March 31,2011. Net interest income increased to 295.7 million highlighting a 24.6% increase over the preceding year. Similar growth was also achieved in the bank's core activities. Gross loans and advances increased by 11.9% during the three months to reach Rs 19.2 billion recording a 64% growth in comparison to March 2011. Total deposits increased to Rs 20 billion as at March 31, 2012. Overall, the group highlighted a total turnover of Rs. 887.6 million and a operating profit on ordinary activities before tax of Rs. 158.6 million a 30 % increase over the corresponding period of last year.

Anil Amarasuriya, Director / CEO of Union Bank expressed his satisfaction over these results and stressed that these were achieved against challenging market conditions. He emphasized on the bank’s future potential and its ability to emerge as a strong performer in the industry.

With the predicted high economic growth rates, the banking and finance sector will contribute positively in driving the country’s way forward. In this context, Union Bank has leveraged on its strong financial position and has comfortably surpassed the regulatory requirements on capital adequacy placed by the Central Bank of Sri Lanka and is already in excess of the Rs 5 billion mark required by 2015 enabling more space to continue bank operations safely and to remain steady and resilient.

Following the bank's successful Initial Public Offering, the bank is now strategically positioned to embark on an aggressive growth strategy and its expansion plan to become a financial power house has taken positives strides in short period of time with the rapid expansion of its branch network and related diversifications, with the acquisition of NAMAL Sri Lanka’s premier Asset Management company and the recent acquisition of The Finance and Guarantee Company Ltd, a pioneering finance company established in 1961.