Union Bank reports robust loan growth in 1H 2024

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

As of 30 June 2024, the Bank achieved a gross income of LKR 8,458 Mn, supported by a diversified revenue base. Net interest income stood at LKR 2,544 Mn, while net fee and commission income amounted to LKR 520 Mn, reflecting the downward market trend seen in the lending and G Sec rates. Total operating income was LKR 3,495 Mn, underscoring Union Bank’s ability to capitalize on business opportunities and optimize operational efficiencies. Despite market challenges the Net operating income was recorded at LKR 3,133 Mn.

Total operating expenses were effectively managed at LKR 2,584 Mn, highlighting the bank’s commitment to prudent expense control and operational discipline. As of 30 June 2024, the Profit before Tax (PBT) stood at LKR 242 Mn and Profit after Tax (PAT) was LKR 72 Mn.

Union Bank’s balance sheet remains robust, with total assets increasing by 3% to LKR 142,755 Mn as of June 30, 2024. The Bank reported a robust growth in loans and advances, of 19% to LKR 73,977 Mn, 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 LKR 98,642 Mn, indicating customer confidence and satisfaction.

The stage 3 loans ratio improved to 10.77%, with a significant portion collateralized, ensuring prudent risk management practices. The Total Capital Ratio stood strong at 16.16% as of June 30, 2024, well above the minimum regulatory requirements, reinforcing the bank’s financial stability

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