The Union Bank, that saw fresh capital infusion of Rs 2 billion in May this year, reported an upturn in its performance for the half year ended 30 June 2010. “The bank’s pre-tax profits improved by 65% to record Rs 110.3 million, up from Rs 66.8 million for the period ended 30 June 2009, whilst post-tax profits increased by 54% to Rs 50 million corresponding to the results achieved for the identical period last year,” the bank said in a press release.
It said its net interest income increased by 54% over the preceding year, while gross loans and advances increased by 16% year on year to reach Rs 9.2 billion. Deposits increased to Rs 12.6 billion as at 30 June 2010, said the bank.
Chairman of Union Bank, Ajita de Zoysa, noted that these results were achieved despite a re-pricing of assets and liabilities against a back drop of declining interest rates and sluggish market conditions.
Mr de Zoysa emphasised on the bank’s future potential following the recent capital infusion of Rs 2 billion partly subscribed by the Genting Group, Malaysia.
Union Bank, which aims to become to preferred bank for small and medium enterprises, says it has now comfortably surpassed the regulatory, minimum capital requirements for commercial banks. The bank is investing significantly in brand building and network expansion as well as value additions to its existing portfolios.
Union Bank recently opened five provincial branches including four in the Northern Province and plans to add another 10 branches to its network during the current year.
The bank’s board of directors comprise of a mix of local entrepreneurs and strategic overseas investors, legal and technology sector experts and professional bankers. |
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