Union Bank profits surge
View(s):Union Bank of Colombo PLC (Union) reported a post-tax profit for the 9-months ended September 2016 of Rs.262 million, a 125 per cent increase year on year (YoY).
The total operating income of the bank grew by 30 per cent YoY to Rs.2,685 million. Interest income grew by 66 per cent YoY to Rs.4,951 million .
Interest expense grew by 128 per cent YoY to Rs.3,301 million. Net Interest Income grew by 7 per cent YoY to Rs.1,651 million. The bank’s fee and commission income of Rs.239 million is an increase of 57 per cent over the comparative period with fee income from business lending, cards and trade transactions being the primary contributors of the said impressive growth.
Other income grew significantly by 104 per cent to Rs.846 million.
Net NPL ratio improved to 1.9 per cent from 2.7 per cent in December 2015 with a corresponding reduction in impairment charges from the comparative period.
Total Impairment charge for the period is Rs.38 million and reflected a 72 per cent reduction YoY. The bank’s total operating expenses increased by 31 per cent to Rs.2,226 million primarily due to investment spending on new branches, ATMs, staff and technology in line with the strategic plan.
The bank remains well capitalised with a strong core capital adequacy ratio of 23 per cent and a total capital adequacy ratio of 22 per cent.