Union Bank reports robust loan growth in 1H 2024

Union Bank announced its financial performance for the first six months, which ended 30 June 2024, highlighting significant growth in the loan book.

As of 30 June, the bank achieved a gross income of Rs. 8,458 million, supported by a diversified revenue base. Net interest income stood at Rs. 2,544 million, while net fee and commission income amounted to Rs. 520 million, reflecting the downward market trend seen in the lending and G Sec rates. Total operating income was Rs. 3,495 million, underscoring Union Bank’s ability to capitalise on business opportunities and optimise operational efficiencies. Despite market challenges the Net operating income was recorded at Rs. 3,133 million. 

Total operating expenses were effectively managed at Rs. 2,584 million, highlighting the bank’s commitment to prudent expense control and operational discipline. As of 30 June, the Profit before Tax (PBT) stood at Rs. 242 million and Profit after Tax (PAT) was Rs. 72 million.

Union Bank’s balance sheet remains robust, with total assets increasing by 3% to Rs. 142,755 million as of 30 June. The bank reported a robust growth in loans and advances, of 19% to Rs. 73,977 million, reflecting strong demand and confidence from customers across various sectors. This growth underscores Union Bank’s commitment to supporting economic expansion through prudent lending practices and tailored financial solutions. Customer deposits also saw substantial growth, increasing by 12% to Rs. 98,642 million, indicating customer confidence and satisfaction. 

The stage 3 loans ratio improved to 10.77%, with a significant portion collateralised, ensuring prudent risk management practices. The Total Capital Ratio stood strong at 16.16% as of 30 June, well above the minimum regulatory requirements, reinforcing the bank’s financial stability.

Union Bank remains dedicated to reinforcing its brand presence and customer experience through significant investments in technology and infrastructure. The bank’s rebranding initiative, including the rollout of a new logo across its branch and ATM network, underscores its commitment to a customer-centric and digitally progressive approach. This strategic move aligns with Union Bank’s vision of transforming lives and enhancing accessibility through innovative banking solutions. 

Union Bank’s investments in digital transformation aim to provide an enhanced customer experience through innovative technologies and seamless service delivery. As part of this effort, the bank has introduced island-wide digital zones offering round-the-clock banking services, with plans for further expansion. These initiatives reflect Union Bank’s steadfast focus on delivering exceptional service and driving sustainable growth in a rapidly evolving financial landscape.

In addition, the bank has actively expanded its outreach across the island through retail product activations, promotions, and the launch of competitive pawning services, ensuring quick processing and competitive advances for customers. The bank’s continued commitment to supporting SMEs and corporates has been further demonstrated through a series of workshops focused on critical topics such as treasury, trade, exports, and cash management, providing valuable insights and fostering growth opportunities for businesses nationwide.

For more information on Union Bank’s 1H2024 financial results, please visit www.unionb.com.