Union Bank achieves nearly half of 2010 profits in 1Q of 2011

The newest public quoted institution in the industry the Union Bank of Colombo has achieved nearly 50% of its full year 2010 profits within the first quarter of the current financial year.

The Bank yesterday reported a net profit of Rs. 60 million in the first three months ended 31 March, 2011, up by a massive 211% over the corresponding period of last year’s figure of Rs. 19.2 million. Interestingly the 2010 full year profit of Union Bank was Rs. 150 million, 40% of which had been already achieved in the first quarter of 2011 financial year. The 2010 bottom line was an increase of 141% over 2009.

The Bank’s pre-tax profit in the 1Q of 2011 was Rs. 99.74 million, up by 137.6% over the first three months of 2010. Net income grew by 61% to Rs. 316.7 million whilst gross income rose by 12% to Rs. 537.9 million.

Interest income had grown by 7.5% to Rs. 458.4 million whilst interest expenses had declined by 22% to Rs. 221 million. Non-interest income had grown by 48% to Rs. 79.5 million with foreign exchange income up 59% to Rs.14.7 million and other income up 45% to Rs. 64.7 million in the 1Q of 2011.

Non-interest expenses had increased by 44% to Rs. 194.6 million with personnel cost rising 38% to Rs. 79.8 million and other operating expenses up 65% to Rs. 75.5 million.

During the 1Q of 2011, net loans and advances by Union Bank had grown by 17.5% to Rs. 11.2 billion whilst total assets rose by 9.5% to Rs. 20.4 billion as at 31 March, 2011 from Rs. 18.6 billion as at 31 December, 2010.

Total deposits raised by the Bank grew by 6.6% to Rs. 14 billion whilst total borrowings rose by 98% to Rs. 795 million.

For the financial year ended on 31 December, 2010, the income of Union Bank amounted to Rs. 2.07 billion, as against Rs. 2.05 billion in 2009. Net interest income had increased from Rs. 463 million in 2009 to Rs. 774 million in 2010.

Pre-tax profit amounted to Rs. 412.8 million, up from Rs. 180.4 million in 2009 whilst profit after tax rose from Rs. 62.1 million to Rs. 149.7 million in 2010.

Union Bank’s assets as at 31 December, 2010 amounted to Rs. 18.6 billion, up from Rs. 14.1 billion a year earlier. Loans and advances had grown from Rs. 6.8 billion to Rs. 8.9 billion. Deposits had crossed the Rs. 13 billion mark from Rs. 11.9 billion in 2009. Shareholders’ funds grew from Rs. 1.6 billion in 2009 to Rs. 4.5 billion in 2010.