Union Bank after tax profits up by 75.4% to Rs. 191.3 m

Further highlighting its strong position as one of fastest growing, Union Bank reported an upturn in its performance for the period ended 30 September 2011.

The bank’s after-tax profits improved by 75.4% recording Rs 191.3 million up from Rs 109 million of  period ended 30 September 2010, whilst pre-tax profits increased by 37.5% to Rs 304.7 million in comparison to the corresponding period of last year.

Net Interest Income increased by 190 million highlighting a 34.9% increase over the preceding year.  

Similar growth was also achieved in the bank’s core activities.  

Gross loans and advances increased by 56.50% during the nine months to reach Rs 15.7 billion whilst total deposits increased to Rs 16.4 billion as at 30 September 2011. Gross non performing advances ratio improved to 4.65% from 9.19% of September 2010. Overall, the group highlighted an after tax profit of Rs. 198.6 million.

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

Following the Banks 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 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.

These acquisitions fits in well with our expansion policy to increase focus and growth in the SME sector and earmark as value additions to our channel strategy to further  penetrate the Small enterprises segment Amarasuriya said.

He further disclosed that 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 deliver an unique value proposition providing superior service delivery to a wider customer base as well as penetrating new markets.

The bank’s primary focus is to be the preferred bank for the Small and Medium Enterprises (SME) and Retail sectors, he further added. The Bank’s branch network now stands at 26 with seven branches located in North and East.  

New branches are expected to open in Kadawatha, Rathnapura, Dambulla and Anuradhapura shortly.