Union Bank reports Rs. 1.2 b pre-tax profit in 2024

Monday, 3 March 2025 04:07 - - {{hitsCtrl.values.hits}}

Chairman Dinesh Weerakkody

Director/CEO

Dilshan Rodrigo

Union Bank said it has reported a resilient financial performance for 2024, achieving a Gross Income of Rs. 16.5 billion and a Net Interest Income (NII) of Rs. 4.8 billion.

While a declining interest rate environment necessitated repricing of the loan book, impacting income levels compared to 2023, the bank demonstrated exceptional growth across key business segments, reaffirming its commitment to customer-centric banking.

The bank’s gross loan portfolio grew by 28% year-on-year to Rs. 88.3 billion, significantly outpacing the industry average growth rate of 4.1%. This impressive expansion was driven by the bank’s strategic focus on innovation and tailored financial solutions for its diverse customer base. Union Bank’s deposit base crossed the Rs. 100 billion milestone to Rs. 103.7 billion registering a 17.9% year-on-year growth, bolstered by strategic rebranding efforts, an energised sales-driven culture, and the bank’s relentless focus on customer engagement.

Impairment charges reduced by 91.4% from Rs. 1,643 million in 2023 to Rs. 142 million in 2024 reflecting the bank’s enhanced underwriting and credit origination standards to safeguarding asset quality. The bank’s Profit Before Tax (PBT) for 2024 was Rs. 1.2 billion and the Profit After Tax (PAT) was Rs. 300 million. The bank also maintained a robust capital ratio of 16.6%, well above regulatory requirements. In 2024, Union Bank Group recorded a Profit Before Tax (PBT) of Rs. 1.4 billion and Profit After Tax (PAT) for the Group was Rs. 300 million. The Total Assets of the Group grew from Rs. 147.2 billion to Rs. 155.6 billion, a 5.6% growth.

Union Bank Chairman Dinesh Weerakkody said; “The bank has developed a forward-looking vision and a comprehensive strategic plan to drive its next phase of growth. By leveraging innovation, enhancing operational efficiencies, and strengthening customer relationships, we aim to position the bank for sustained success in a rapidly evolving financial landscape.”

Director/ CEO Dilshan Rodrigo said: “Union Bank has a bold aspiration to be a top contender in the banking industry. We are committed to transforming the bank by embedding our core values of customer centricity and service excellence, supported by a digital-first approach, into everything we do. By combining technology, innovation, and skilled talent, we are building a stronger, more agile bank to meet the evolving needs of our customers and stakeholders.”

As part of its transformation under CG Corp Global, the bank undertook a major brand revamp, introducing a new identity and the promise of transforming lives.

Expanding its product portfolio, the bank launched leasing and pawning to better serve customer needs. Simultaneously, digital banking channels were upgraded to enhance customer experience, and digital zones were introduced in key cities for 24/7 banking services. Union Bank also became the first bank in Sri Lanka to achieve PCI DSS version 4 and ISO 27001:2022 certifications, underscoring its commitment to information security and operational excellence.

In supporting SME development, the Bank launched the Union Bank School of Social Entrepreneurship (UBSSE) and partnered with the University of Moratuwa and the National Innovation Agency on the National Entrepreneurship Development Program.

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