Union Bank was able to continue a steadfast performance in the 9 months ended September 30, 2023 recording a notable improvement in the core banking performance with an overall income of LKR 17,314 Mn, a 36% increase over the comparative period.
Net Interest Income (NII) was a key driver for the increase in the Bank’s revenue, which increased by 19% to LKR 4,822 Mn as a result of improved yields from the loan portfolio and treasury assets.
Net Fee and Commission Income increased by 9% aided by credit cards, remittances, and increased activity from the trade business.
The Bank’s Total Operating Income before impairments was LKR 6,185 Mn., an increase of 11%. The Bank’s impairment charge for the period was LKR 1,200Mn.
Despite the prudent cost management initiatives, the Bank’s Total Operating Expenses increased by 22% to LKR 3,838 Mn mainly due to, significant increases in the utility tariffs, salaries and exchange impacted general expenses.
Consequently, the Bank’s Profit Before Tax (PBT) including its equity accounted share of subsidiaries as of 30 September 2023, increased by 81% to LKR 717 Mn and the Bank’s Profit After Tax (PAT) also increased by 65% to LKR 375 Mn.
The Total Assets of the Bank stood at LKR 130,319Mn as of 30 September 2023. The Bank maintained a strong liquidity position during the period under review and the Liquid Asset Ratio stood at 39.16% whilst, the Liquidity Coverage Ratio was 878%, above the regulatory requirements. The Bank’s Loans and Advances were LKR 63,204Mn.
The Union Bank Group, consisting of UB Finance Company Ltd., and National Asset Management Ltd., recorded an improved overall performance with a 57% increase in PBT amounting to LKR 825Mn and an increase in PAT by 52% amounting to LKR 459 Mn for the period up to 30 September 2023.
The total Assets of the Group was LKR 138,519Mn with the Bank’s share amounting to over 94%.
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