Building on its robust start to the year, Union Bank sustained its strong performance momentum into the first half (1H) of 2026, delivering strong growth in profitability, core earnings, and balance sheet strength.
Reflecting a sharp trajectory of operational efficiency and revenue expansion, the Bank’s Profit Before Tax (PBT) increased by 84% year-on-year to LKR 881 Mn for 1H 2026. Profit After Tax (PAT) expanded by 134% year-on-year to LKR 587 Mn, almost doubling its first-quarter performance and underscoring sustained earnings quality.
Core revenue drivers continued to perform strongly during the six-month period. Gross income rose by 19% to LKR 10,139 Mn, underpinned by a 22% increase in Net Interest Income (NII) to LKR 3,148 Mn, reflecting the resilience of the Bank’s core lending and treasury operations. Net Fee and Commission Income also posted a steady 13% increase to LKR 732 Mn, driven by consistent contributions from the retail, SME, and corporate banking segments. Overall, income from operating activities grew by an impressive 58% to LKR 1,250 Mn, which also included LKR 249 Mn arising from the sale of shares held by the Bank in its subsidiary, UB Finance PLC. To support market penetration and accelerate deposit mobilization, operating expenses increased by a disciplined 9%.
The Bank’s balance sheet continued its upward expansion, with Total Assets growing by 15% to LKR 199,283 Mn. Customer deposits grew by 10% to LKR 130,219 Mn, demonstrating deepening customer confidence in response to the Bank’s targeted marketing and promotional initiatives. Gross loans and advances stood at LKR 136,742 Mn, up 16% year-on-year, maintaining the strong credit momentum established earlier in the year.
At the Group level—which includes UB Finance PLC and National Asset Management Limited—performance remained equally robust. Group Total Assets grew by 17%, while Group Profit Before Tax rose by 97% to LKR 997 Mn. Group Profit After Tax surged by 141% to LKR 604 Mn, confirming strong performance across the Group’s non-bank financial and asset management businesses.
Commenting on the results, Chairman Dinesh Weerakkody said, “Our first-half 2026 performance reflects the strong momentum of Union Bank’s transformation. We remain committed to delivering sustainable growth and creating long-term value for our customers, shareholders, employees, and all stakeholders.”
Director/Chief Executive Officer Dilshan Rodrigo added that the first-half results highlight tangible returns from deliberate investments in new products, marketing, sales initiatives, and digital capabilities, providing a solid foundation for sustaining this momentum through the remainder of 2026.
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Dinesh Weerakkody, Chairman, Union Bank
Dilshan Rodrigo, Director/Chief Executive Officer, Union Bank
