Union Bank announced its financial performance for the first six months, which ended June 30, 2024, highlighting significant growth in the loan book.
As of 30 June 2024, the Bank achieved a gross income of LKR 8,458 Mn, supported by a diversified revenue base. Net interest income stood at LKR 2,544 Mn, while net fee and commission income amounted to LKR 520 Mn, reflecting the downward market trend seen in the lending and G Sec rates. Total operating income was LKR 3,495 Mn, underscoring Union Bank’s ability to capitalize on business opportunities and optimize operational efficiencies. Despite market challenges the Net operating income was recorded at LKR 3,133 Mn.
Total operating expenses were effectively managed at LKR 2,584 Mn, highlighting the bank’s commitment to prudent expense control and operational discipline. As of 30 June 2024, the Profit before Tax (PBT) stood at LKR 242 Mn and Profit after Tax (PAT) was LKR 72 Mn.
Union Bank’s balance sheet remains robust, with total assets increasing by 3% to LKR 142,755 Mn as of June 30, 2024. The Bank reported a robust growth in loans and advances, of 19% to LKR 73,977 Mn, reflecting strong demand and confidence from customers across various sectors. This growth underscores Union Bank’s commitment to supporting economic expansion through prudent lending practices and tailored financial solutions. Customer deposits also saw substantial growth, increasing by 12% to LKR 98,642 Mn, indicating customer confidence and satisfaction.
The stage 3 loans ratio improved to 10.77%, with a significant portion collateralized, ensuring prudent risk management practices. The Total Capital Ratio stood strong at 16.16% as of June 30, 2024, well above the minimum regulatory requirements, reinforcing the bank’s financial stability.
Union Bank remains dedicated to reinforcing its brand presence and customer experience through significant investments in technology and infrastructure. The bank’s rebranding initiative, including the rollout of a new logo across its branch and ATM network, underscores its commitment to a customer-centric and digitally progressive approach. This strategic move aligns with Union Bank’s vision of transforming lives and enhancing accessibility through innovative banking solutions. Union Bank’s investments in digital transformation aim to provide an enhanced customer experience through innovative technologies and seamless service delivery. As part of this effort, the bank has introduced island-wide digital zones offering round-the-clock banking services, with plans for further expansion. These initiatives reflect Union Bank’s steadfast focus on delivering exceptional service and driving sustainable growth in a rapidly evolving financial landscape.
In addition, the Bank has actively expanded its outreach across the island through retail product activations, promotions, and the launch of competitive pawning services, ensuring quick processing and competitive advances for customers. The bank’s continued commitment to supporting SMEs and corporates has been further demonstrated through a series of workshops focused on critical topics such as treasury, trade, exports, and cash management, providing valuable insights and fostering growth opportunities for businesses nationwide.
For more information on Union Bank’s 1H2024 financial results, please visit www.unionb.com
