Union Bank has reported a resilient financial performance for 2024, achieving a Gross Income of LKR 16.5 Bn and a Net Interest Income (NII) of LKR 4.8 Bn. While a declining interest rate environment necessitated repricing of the loan book, impacting income levels compared to 2023, the Bank demonstrated exceptional growth across key business segments, reaffirming its commitment to customer-centric banking.
The Bank’s gross loan portfolio grew by 28% year-on-year to LKR 88.3 Bn, significantly outpacing the industry average growth rate of 4.1%. This impressive expansion was driven by the Bank’s strategic focus on innovation and tailored financial solutions for its diverse customer base. Union Bank’s deposit base crossed the LKR 100 Bn milestone to LKR 103.7 Bn registering a 17.9% year-on-year growth, bolstered by strategic rebranding efforts, an energised sales-driven culture, and the Bank’s relentless focus on customer engagement.
Impairment charges reduced by 91.4% from LKR 1,643 Mn in 2023 to LKR 142 Mn in 2024 reflecting the Bank’s enhanced underwriting and credit origination standards to safeguarding asset quality. The Bank’s Profit Before Tax (PBT) for 2024 was LKR 1.2 Bn and the Profit After Tax (PAT) was LKR 300 Mn. The Bank also maintained a robust capital ratio of 16.6%, well above regulatory requirements. In 2024, Union Bank Group recorded a Profit Before Tax (PBT) of LKR 1.4 Bn and Profit After Tax (PAT) for the Group was LKR 300 Mn. The Total Assets of the Group grew from LKR 147.2 Bn to LKR 155.6 Bn, a 5.6% growth.
Dinesh Weerakkody, Chairman of Union Bank stated, “the Bank has developed a forward-looking vision and a comprehensive strategic plan to drive its next phase of growth. By leveraging innovation, enhancing operational efficiencies, and strengthening customer relationships, we aim to position the Bank for sustained success in a rapidly evolving financial landscape”.
Dilshan Rodrigo, Director/ CEO of Union Bank stated that “Union Bank has a bold aspiration to be a top contender in the banking industry. We are committed to transforming the Bank by embedding our core values of customer centricity and service excellence, supported by a digital-first approach, into everything we do. By combining technology, innovation, and skilled talent, we are building a stronger, more agile Bank to meet the evolving needs of our customers and stakeholders”.
As part of its transformation under CG Corp Global, the Bank undertook a major brand revamp, introducing a new identity and the promise of Transforming Lives. Expanding its product portfolio, the Bank launched leasing and pawning to better serve customer needs. Simultaneously, digital banking channels were upgraded to enhance customer experience, and digital zones were introduced in key cities for 24/7 banking services. Union Bank also became the first bank in Sri Lanka to achieve PCI DSS version 4 and ISO 27001:2022 certifications, underscoring its commitment to information security and operational excellence. In supporting SME development, the Bank launched the Union Bank School of Social Entrepreneurship (UBSSE) and partnered with the University of Moratuwa and the National Innovation Agency on the National Entrepreneurship Development Programme. The Bank continues to be recognized among LMD’s Top 100 brands and Sri Lanka’s Top 100 listed companies, reaffirming its strong market position.
