Union Bank post tax profit up 39%

Union Bank of Colombo PLC (UBC) reported a 39% increase in post tax profit to Rs. 87.2 million during the third quarter ending 30 September 2012, reinforcing its position as one of Sri Lanka’s fastest growing banks. The bank’s pre-tax profit improved by 25% and net interest income increased by 19% during the same period.

At the end of the quarter ending 30 September 2012, total deposits increased to Rs. 21.9 billion recording a 13% growth and total assets grew by 14% to Rs. 29.749 billion in comparison to 31 December 2011. Union Bank also reported a post tax profit of Rs. 188.4 million for the first nine months of 2012.

Anil Amarasuriya, Director/CEO of Union Bank expressed his satisfaction over these results which reflects the bank’s potential and ability to continue to emerge as a strong performer in the industry and fulfill its continued commitment to position itself as one of Sri Lanka’s fastest growing banks.

Amarasuriya also disclosed that the bank is investing significantly in brand building, technology and network expansion. The introduction of a new advanced core banking solution is in progress to enable the bank to add further value to its management processes and service delivery.

This is undertaken in partnership with the internationally renowned banking solutions supplier, Silverlake Systems, Malaysia, to further enhance the bank’s technology, enabling Union Bank to be in the forefront as a technologically advanced bank in Sri Lanka.

Value additions to existing product portfolios and launching of new products to deliver unique value propositions to customers are also being considered to strengthen the bank’s primary focus of being the preferred bank for small and medium enterprises (SME) and retail sectors.

The recent product innovations such as TV banking and interest upfront deposits, paying customers interest upfront on short term investments have opened up new banking opportunities for Union Bank customers.

The bank also introduced a unique children’s savings account called ‘Punchi Pathum’ which allows withdrawals to be made at several stages before the child reaches 18 years for necessities that may arise. The bank has also signed up with a leading risk management solutions company Kalypto Risk Technologies, India to implement sophisticated risk management systems, taking the bank to a new pinnacle in advanced risk measurement and management. The bank’s branch network now stands at 36 with the recent opening of the Marawila branch.