Business Archives | Union Bank of Colombo PLC Sri Lanka

Union Bank – the exclusive corporate partner for Jurassic World: Fallen Kingdom premier by Universal Pictures

06 June 2018

Union Bank will be the exclusive corporate partner for the first ever movie to be premiered in Sri Lanka by Universal Pictures, Jurassic World: Fallen Kingdom.

The exclusive premier will be presented on Thursday, 7th June at 7.00 pm at Scope Cinemas, Colombo 3.

Scope Cinemas is the authorised distributor for Jurassic World – Fallen Kingdom and the exclusive premier will be presented in Sri Lanka in partnership with TNL Radio Networks.

Jurassic World: Fallen Kingdom is a 2018 American science fiction adventure film directed by J. A. Bayona. The film is the sequel to Jurassic World (2015) and is the fifth installment of the Jurassic Park film series, as well as the second installment of a planned Jurassic World trilogy. The film features Derek Connolly and Jurassic World director Colin Trevorrow as writers, with Trevorrow and original Jurassic Park director Steven Spielberg acting as executive producers. The film is set on the fictional island of Isla Nublar, off Central America’s pacific coast. Chris Pratt, Bryce Dallas Howard, B. D. Wong, and Jeff Goldblum reprise their roles from previous films in the series, with Rafe Spall, Justice Smith, Daniella Pineda, James Cromwell, Toby Jones, Ted Levine, Isabella Sermon and Geraldine Chaplin joining the cast.

Union Bank’s exclusive partnership with the movie premier signifies the Bank’s commitment to bring unique lifestyle experiences to its most valued clients in the Elite Circle and minor account holder segment; while the association with Universal Pictures denotes the Bank’s growing popularity as a fast growing household financial brand in Sri Lanka.

Union Bank is a fully-fledged commercial bank offering a comprehensive product portfolio to serve the Retail, SME and Corporate sectors. More details of Union Bank and its products and services are available on unionb.com

Union Bank conducts breakfast forum for Elite Circle clients

02 April 2018

Appearing in the photograph (from L to R); Mr. Suresh Perera conducting the discussion / a cross section of the participants / Mr. Udeani Alwattage leading a discussion on the Exchange Control Act of Sri Lanka.

Union Bank hosted its Elite Circle clients to an exclusive breakfast forum at the Jetwing Colombo Seven recently. The event was received with great enthusiasm by the participants and was attended by over seventy five exclusive clients of the Bank.

The breakfast forum led by two distinguished speakers, was held under the theme ‘Personal Taxation and highlights of the Exchange Control Act of Sri Lanka’. An informative presentation and discussion on Personal Taxation was conducted by Mr. Suresh Perera, Principal – Tax and Regulatory at KPMG Sri Lanka. Mr. Udeani Alawattage, Director – Department of Foreign Exchange of the Central Bank of Sri Lanka presented an insightful preview to the highlights of the recently updated Exchange Control Act of Sri Lanka. The interactive sessions imparted useful information and knowledge to the audience which comprised of an exclusive segment of high-net-worth clients.

Union Bank Elite Circle signifies the pinnacle of relationship banking and is designed with the clients’ need for exclusivity in mind. Having understood the unique needs of this clientele, the Bank provides its Elite Circle clients with opportunities to gain first-hand knowledge on the latest developments in the financial services sector that would impact their wealth management decisions. The Bank also offers exclusive lifestyle privileges and experiences to its Elite Circle clientele, delivering an enhanced banking experience in recognition of their exclusive banking relationships.

More information on Union Bank Elite Circle and its exclusive privileges may be accessed via the Bank’s corporate website unionb.com.

Union Bank Unveils Early Avurudu Gift Offer

29 March 2018

Union Bank launched ‘Kalin Avurudu Ganudenu’, an early-bird offer of exciting gifts for savings; in preparation for the upcoming Sinhala and Tamil New Year.

The gifts offer which commences on 25th March 2017 providing customers the opportunity and flexibility to save in slabs and collect valuable gifts at each threshold, while watching their savings balances grow. This year’s promotion has been further enhanced to offer a choice of gifts for selected savings slabs, making it an even more attractive gift offer for customers.

The gifts will be offered for new deposits made to existing and new Savings/Current accounts. The tiered gift structure include a travelling bag for deposits above Rs.10,000/-, an electric kettle for deposits above Rs.50,000/-, a choice between a Bluetooth speaker, pop-up toaster or a mobile power bank for deposits above Rs.100,000/-, a choice of attractive gifts including a set of a gas cylinder and gas cooker or a food processor or a remote control stand fan for deposits above Rs.500,000/-. Deposits of Rs.1,000,000 and above will be eligible for an exclusive range of gifts that include a choice between LED TVs, mini bar refrigerators, Tabs or a kitchen utility set that includes a gas cylinder, two burner glass top gas cooker and a saucepan set.

Union Bank offers a host of savings and deposit products, including Union Bank Ultrasaver and Union Bank Salary Power accounts designed to provide attractive returns and value added benefits for regular savers. This promotion would be an ideal opportunity to take advantage of these benefits while enjoying banking convenience and easy account access through the Bank’s island-wide network of 67 branches and the extended ATM network connected to over 4000 ATMs across the country through LankaPay.

Union Bank also offers a novel banking experience through its Online Banking platform and the Mobile Banking app geared to meet the demanding lifestyle needs of its clients.

The ‘Kalin Avurudu Ganudenu’ is a limited time offer and will be available only till stocks last. Customers could visit their nearest Union Bank branch or call the Bank’s 24-hour Contact Centre on 011 5 800 800 to avail of this offer.

Union Bank records strong growth of profits to Rs.782 Mn from operating activities in FY2017

28 February 2018

Bank Performance

Net Interest Income up 21.5% YoY to Rs. 3,046 Mn
Net Fee and Commission Income up 17.1% YoY to Rs. 673 Mn
Total Operating Income grew by 17.1% YoY to Rs. 4,376 Mn
Profits from Operating Activities grew by 35.6% YoY to Rs. 782 Mn
Total Assets grew by 28% YTD to Rs. 119,007 Mn
Net worth increased by Rs. 774 Mn YoY
Strong Balance Sheet with Total Capital Adequacy Ratio at 19%

Group Performance

Net Interest Income up 22.6% YoY to Rs. 3,702 Mn
Net Fee and Commission Income up 11.5% YoY to Rs. 827 Mn
Total Operating Income grew by 14.9% YoY to Rs. 5,261 Mn
Profits from Operating Activities grew by 22.3% YoY to Rs. 1,026 Mn
Total Assets grew by 26.9% YTD to Rs. 127,601 Mn

Despite the volatile macro environment, the Bank performed exceptionally well in 2017 resulting in a 35.6% increase in profits from operating activities to Rs. 782 Mn in comparison to Rs. 577 Mn recorded in 2016, while recording a profit before tax (PBT) of Rs. 534 Mn, a 23% growth YoY. Gross income of the Bank improved by 39.7% to Rs. 11,938 Mn in comparison to Rs.8,546 Mn recorded in 2016. Income growth of the Bank in 2017 was mainly driven by the core banking operations. This highlights the Bank’s continuing progress in its swift transition to a full-fledged commercial bank with a wider focus on Retail, Corporate and SME sectors. The impressive results, reflect the success of the rapid expansion initiatives implemented by the Bank following the capital infusion made in the latter part of 2014.

Core Banking Growth and Profitability

The net interest income of the Bank recorded Rs. 3,046 Mn during the year, significantly improving by Rs. 539 Mn which translates to an increase of 21.5%. The rise in net interest income was mainly driven by the balance sheet growth of the Bank. The Bank’s loans and receivables stood at Rs. 70,578 Mn as at end of 2017. This was a growth of Rs. 15,140 Mn which translated to a healthy increase of 27.3%. Composition of the loans and receivables of the Bank changed in line with the Bank’s strategy for the year.

The Bank’s deposit mobilisation strategies yielded good results with the deposit base of the Bank standing at Rs. 70,326 Mn along with a growth of Rs. 18,484 Mn which is an impressive 35.7% increase in 2017. Much of this growth was steered by retail fixed deposit growth of Rs. 13,284 Mn, 58.7% growth over the previous year. The Bank continued to focus on CASA supported by several strategic initiatives such as the offsite ATM network, Debit Cards, sales force and enhanced brand awareness. CASA recorded Rs. 3,952 Mn growth which translated to 32.0% in comparison to 2016. CASA mix was at 23% in2017.

The Bank has made significant efforts to improve its fee and commission income using the key enablers established during the current and the previous years. Fee and commission income which mainly comprised of deposit related fees, trade and remittances, loans, cards and other fees increased to Rs. 783 Mn, an increase of 17.4%. The Bank reported a net trading and other income of Rs. 656 Mn. This reflected a strong 35.0% growth in income to Rs. 335Mn in comparison to Rs. 248 Mn in 2016. The increase was mainly attributable to an increase in capital gains from trading

Business Performance and Strategic Enablers

The Bank’s loans and receivables stood at Rs. 70,578 Mn as at end of 2017. This was a growth of Rs. 15,140 Mn which translated to a healthy increase of 27.3%. Composition of the loans and receivables of the Bank changed in line with the Bank’s strategy for the year.

The Bank reported a net trading and other income of Rs. 656 Mn. This reflected a strong 35.0% growth in income to Rs. 335Mn in comparison to Rs. 248 Mn in 2016. The increase was mainly attributable to an increase in capital gains from trading securities. The Bank has no trading equities and has not invested in equity funds as of the Balance Sheet date. Reflecting the effectiveness of the strategies adopted, in a backdrop of testing market conditions the Bank recorded Rs. 4,376 Mn total operating income for the year. This increase of Rs. 638 Mn was a 17.1% growth YoY.

The Bank has achieved a significant improvement in asset quality through the adoption of a robust risk management frame work and by implementing rigorous risk management practices including stringent appraisal processes, strong collection efforts and risk based pricing. The gross NPL Ratio was at 2.7% at year end.

Operating expenses of the Bank was well managed and increased to Rs. 3,345 Mn during the year, as opposed to Rs. 3,008Mn in 2016, which is only an increase of 11.2%. This is in comparison to the total operating income increase of 17.1% during the same period.

Total taxes for 2017 was Rs. 377 Mn, an 86.6% increase in comparison to 2016. Increase in VAT and NBT on financial services was due to the increase in VAT rate to 15% from 11%. Increase in Corporate tax was due to the increase in the taxable income as a proportion in comparison to 2016. Profit after taxes of the Bank for the year was Rs. 461 Mn. The YoY PAT growth at Bank level was affected due to significant one off income made in 2016 through its subsidiary UB Finance. Net assets value per share of the Bank improved to Rs. 16.36 from Rs. 15.65 in 2016. Total assets of the Bank grew by 28.0% to Rs. 119,007Mn in comparison to Rs. 93,009 Mn in 2016.

The Bank maintained a robust Capital Adequacy Ratio throughout the year reporting 18.9% core capital ratio as at the year end.

The Group, consisting of the Bank and its two subsidiaries, UB Finance Company Limited and National Asset Management Limited reported a PAT of Rs. 551 Mn in 2017 supported by total operating income growth of 14.9% YoY. Net asset value per share of the Group improved to Rs. 15.98 from Rs. 15.22 in 2016. Total assets of the Group grew by 26.9% YTD to Rs. 127,601Mn and the Group maintained a healthy Core Capital Ratio of 18.6% during the year under review.

Operational Performance

The year 2017 saw Union Bank further building on the strong fundamentals that were laid during the previous two years, to maintain its robust growth momentum despite the challenging macro- economic conditions that dominated the year.

The Corporate Banking portfolio of the Bank recorded a notable performance in the year 2017, while delivering enhanced customer value by offering a comprehensive product package supplemented by Union Bank Biz Direct – a state of the art transaction banking and cash management solutions platform launched in 2016.

The SME Banking portfolio of Union Bank recorded a steady growth in 2017 recording an expansion of 14%, on the back of a strategic lending approach focused on pre-identified industries and geographic regions. Although extreme climate conditions took a toll on a number of industries, timely intervention and preventive action ensured that the Bank was secured of possible portfolio losses.

The retail deposit base of the Bank grew notably in 2017 on the back of a focused strategy driven through identified key segments. A YoY deposits growth of 54% was recorded under the retail segment with a heathy CASA mix of 20%. Amidst intense competition and increasing rate trends, Retail banking operations accounted for 39% of the overall CASA growth of the Bank. Localised consumer promotions played a pivotal role in driving the acquisition of low cost funds while the ‘Kalin Avurudu’ strategic savings campaign and five year fixed deposits campaign conducted in 2017 made significant contributions towards the Retail deposit growth.

Debit Card issuance was made simpler in 2017 which resulted in an improved cross-sell ratio and a steady growth of the Bank’s Debit Card base. The Bank continued to offer value-added merchant offers to the debit cardholders resulting in better engagement, particularly during festive seasons. Marking a significant turning point in data security protection, in 2017 Union Bank became the first bank in Sri Lanka to receive the international Payment Card Industry Data Security Standard (PCI DSS)by the Security Standards Council.

A healthy growth was recorded in the Union Bank Personal Loans portfolio, while Home Loans was further expanded in 2017 to accommodate condominium financing for pre-approved developers. To further strengthen the Bank’s asset product suite, Loan against Property (LAP) was introduced in 2017 to fulfill personal financial requirements of individuals by extending funds against the mortgage of an immovable property held as collateral.

The Treasury which consists of Interbank, Fixed Income and Corporate Sales desks continued to make significant contributions to the Bank’s bottom line. Treasury Department of the Bank continued to act as the intermediary in facilitating funding and investing for the Bank’s Corporate, Retail and SME business units. Supported by market volatilities that prevailed throughout the year, trading on fixed income securities recorded a profit of Rs. 107.1 Mn and foreign exchange income of Rs. 79.1 Mn for the year 2017.

The results also reflect the success of Union Bank’s expansion initiatives that gained further momentum in 2017, with its island-wide network increasing to 67 branches by the end of 2017. Continuing to deliver easy account access island-wide, The Bank’s ATM reach further expanded with the addition of new off-site ATM locations, sizing up the network of bank-owned ATMs to 124. In line with the Bank’s mandate to deliver greater banking convenience, 14 existing branches were remodeled and relocated, unveiling a new look and offering a redefined banking experience.

In its efforts to offer a seamless banking experience to the Bank’s clients, Union Bank introduced an all new Mobile Banking app in the 3rd quarter of 2017. Earlier in 2017, the Bank introduced an ultra-modern online banking platform, and taking a step further the Bank enriched this online presence by extending it to Mobile Banking with more adoptability and flexibility to deliver ultimate convenience to its customers and non-customers alike.

Union Bank brand made further progress on its position amongst LMD’s leading 100 brands in Sri Lanka, climbing 6 notches in its ranking in 2017. In recognition of its strong brand presence on social and digital media, Union Bank was conferred the title for ‘Best Facebook Campaign’ at the CMO Asia Social Media and Digital Marketing Awards 2017, while at the Asia Banking, Financial Services and Insurance Awards, Union Bank clinched two awards for its customer orientation and technology orientation. Union Bank gained significant recognition at the inaugural LankaPay Technnovation awards held in 2017 and collected four awards in recognition of its profound growth and performance in the technological innovation space within the banking industry. Union Bank’s Annual Report 2016 won the ‘Compliance Award for Excellence’ in the financial services sector at the grand finale of the 53rd Annual Report Awards conducted by the Institute of Chartered Accountants of Sri Lanka.

Commenting on the performance of the Bank, Director/Chief Executive Officer of Union Bank Mr. Indrajit Wickramasinghe stated “the year 2017 ended a period of transformation and the implementation of a 3 year strategic plan that resulted insignificant enhancements to the business model resulting in transformational growth in the Bank’s performance during these 3 years. Our strategic aim is to be amongst the preferred Retail/SME and Transactional Banks by 2020 with greater focus on building relationships. Beginning 2018, we will achieve this by embarking on an enhanced growth trajectory in our preferred segments and strengthening our franchise value”

Union Bank Biz Direct powers UA with cutting-edge Cash Management technology

14 February 2018

CEO Union Bank, Indrajit Wickramasinghe presents a plaque to CEO Union Assurance Dirk Pereira. Also in the photograph (from L to R) are, Anura Hettikanda – Senior Manager Life Operations UA, Ruwan Rodrigo –Senior Manager Finance UA, Iroshi Tittagoda – GM Life Operations at UA, Sherine Cadre – GM Finance & Planning at UA, Hiranthi De Silva- VP Wholesale Banking at Union Bank, Asanga Tennakoon – AVP/Corporate Banking Team Head at UB, Pasindu Dharmasiri- Chief Manager/Head of Transaction Banking and Cash Management at UB and Manula Ekanayake – Manager Client integration & implementation at UB.

Union Bank partnered Union Assurance PLC (UA) with the Bank’s revolutionary cash management solution Union Bank Biz Direct, enabling greater cash management efficiency for the leading insurer.

Union Bank is the only local bank to offer a state of the art, end to end payments and cash management solution bundled with Host to Host (H2H) and multi factor authentication modes where clients enjoy the freedom to choose the authentication mode interoperability. Geared for comprehensive fraud prevention and security, Union Bank Biz Direct offers multi factor authentication with Hard/ Pin Pad and Soft /Mobile tokens along with One Time Password (OTP) log-in access. Additionally, SMS and E-mail confirmations are also offered as multiple form factors. The comprehensive claims settlement and cash management system effortlessly integrates with commonly applied ERP (Enterprise Resource Planning) systems while seamlessly integrating across multiple ERPs of a company, thus eliminating layers of complexity and adding a new dimension of convenience and efficiency to cash management functions.

The customised solution, designed and delivered for Union Assurance PLC further offers comprehensive Payments Initiation through the H2H channel while facilitating Receivables, Collections and Reconciliation though MT940 (as per ISO standards) solution which is carefully aligned with the organisation’s current processes, practices and audit standards. Trilingual Corporate cheque counter foil for beneficiaries is another highlight of the system which will mark a milestone for UA and the insurance services industry of Sri Lanka.

Commenting on the partnership the General Manager Finance and Planning of Union Assurance PLC, Sherin Cader said, “Running a business in today’s competitive market space can be quite complex. Business owners must juggle multiple operational demands and ensure products or services meet customers’ needs effectively and efficiently while staying atop the latest technological trends. With so much going on, it is beneficial to streamline some processes to free up time to focus on more value adding tasks. One such area which we at Union Assurance identified is the management of our claims payment process, thereby the cash out flows. This is why we believe that Union Bank’s Biz Direct solution will enable our company to avoid common inefficiencies and risks in the payment process as it is a customisable solution with the right combination of services that can lead to improved security and speed while at the same time increasing business efficiency by freeing up time and resources in-house.”

Commenting on the partnership with UA, Union Bank’s Chief Manager/Head of Transaction Banking and Cash Management Pasindu Dharmasiri stated, “I’m pleased to announce the completion of the inaugural integration of UB Enterprise solution powered through Union Bank Biz Direct for UA, to enable faster, efficient and more precise payments and cash management processes for the company. As one of the trusted cash management partners of one of the leading insurers in the country, we believe that this partnership will afford UA many exclusive benefits by simplifying otherwise cumbersome processes such as Current account management, vendor payment management, cash collection and distribution of dividends. I’m also pleased to note that the experienced members of Union Bank Transaction Banking and Cash Management team has been successful in identifying specific business requirements and business dynamics of UA, thus putting together a customised cash management with right combination of functions that assures optimum results. As we look to roll out this superior technology to other corporates in the country, our capable team of cash management advisors with full understanding of the industries they work with; are well geared to act as financial resources that would enable growth and expansion of businesses, be it SMEs or large corporates.”

Vice President Wholesale Banking of Union Bank, Hiranthi De Silva remarked “Cash management services are evolving rapidly with the aid of technology and many businesses aren’t still taking advantage of these facilities to ease their burdens of collecting, depositing and disbursing funds. Also, some businesses don’t monitor for cheque frauds or unauthorised transactions, which could be a costly oversight if an incident were to occur. Inefficiencies like these that cost businesses both time and money, could be completely avoided with an electronically managed process. Union Bank Biz Direct is one such groundbreaking cash management solution which would change the way businesses manage their cash flows by adding a layer of security while boosting efficiencies by a few notches. We are the only local private commercial bank to offer a comprehensive cash management solution under one product and Union Bank will continue to pioneer this domain by continuously enhancing our Biz Direct solution to meet the changing payment and cash management needs of corporates and SMEs of the country.”

More information on Union Bank BizDirect could be obtained by calling the Bank via 011 2448 047, while existing business banking clients of the Bank could contact the relevant Relationship Manager to avail this facility.

Union Bank and UA Project Team — The project team from Union Assurance and Union Bank. Standing (from L to R) are; Chandima Sewvandi, Chamika Hiranthi, Anura Hettikanda, Ruwan Rodrigo, Dinesh Rajapakse and Ranil Silva – from the UA team along with Pasindu Dharmasiri, Manula Ekanayake, Kasun Rochana, Lakmal Mettananda, Tashya Labrooy and Ereka Dahanayake from the Union Bank team.

Union Bank salutes its long-serving employees

02 January 2018

Once again the long serving employees of Union Bank were honoured at the Bank’s annual dinner dance held recently at Waters Edge, where they were felicitated with an award of recognition and rewards. Rajan Shanmugeswaran of the Wellawatte Branch, Oshadi Gunasekara of Internal Audit, Nirosha Kanangara of the Process Control unit were the recipients of the awards this year. This initiative is a part of the Bank’s continued efforts to recognise and appreciate the commitment and dedication of its long serving staff.

Commenting on the awards, Vice President Human Resources, Ravi Jayasekera said, “Embedded within the success of Union Bank are the tireless effortsand dedication of our staff who have remained an integral part of the Bank throughout its progress. We believe that loyal, long-serving employees are one of the biggest assets of the Bank. At a time when changing jobs frequently is becoming a trend, Union Bank is proud to be felicitating long serving employees every year”.

Established in 1995 as the 8th indigenous Bank, today Union Bank is amongst the highest capitalized private commercial Banks in Sri Lanka, offering a full range of products and services to personal and commercial financial sectors. Supported by the strength of a global giant, Union Bank has etched for its self a solid foundation of financial stability backed with international know-how and best practices and is rapidly progressing as one of Sri Lanka’s fastest growing Financial institutions.