Union Bank announced its financial performance for the 9 months ending 30^th September 2024, showcasing both resilience and growth in key areas, even as the bank navigates a challenging market environment.

Key Financial Highlights

Despite facing fluctuations in market interest rates and narrowed margins, Union Bank achieved significant milestones during the period under review. The bank demonstrated an impressive 22% increase in loans and advances to customers, reaching LKR 75,744  million. Additionally, deposits grew by a solid 9%, amounting to LKR 96,328 million, highlighting the bank’s commitment to expanding its customer base.

Total assets also increased by 2%, reaching LKR 142,474 million, reflecting the bank’s robust financial standing. The Total Capital Adequacy Ratio remains strong, well above regulatory requirements, underscoring Union Bank’s stability and financial health.

While the bank's gross income reported a decrease of 29%, totalling LKR 12,324 million, and net interest income fell by 26% to LKR 3, 573 million, these challenges prompted the bank to focus on operational efficiency. Total operating expenses were increased only by 5 %, amounting to LKR 4,032 million, showcasing the bank’s effective cost management strategies.

Profit before tax for the 9 months was recorded at LKR  358 million, while profit after tax stood at LKR 117 million. The group performance mirrored this trend, with profit before tax at LKR 407 million and profit after tax at LKR 111 million.

Strategic Initiatives

Union Bank implemented several strategic initiatives aimed at driving growth and enhancing customer engagement. The bank relaunched its leasing and pawning business, supported by aggressive marketing campaigns across its extensive island-wide branch network. This initiative is designed to attract new customers and provide existing clients with more diverse financial solutions. Additionally, Union Bank signed a Memorandum of Understanding (MoU) with John Keells CG Auto to introduce the new BYD range of electric vehicles, emphasizing the bank’s commitment to sustainable transportation options. Furthermore, the bank achieved significant milestones in information security, becoming the first and only local bank to receive both the PCSIDSS Ver 4.0 and ISO 27001 certifications. This accomplishment underscores Union Bank's dedication to protecting customer data and enhancing operational integrity. The Bank partnered with the USAID supported Climate Adaptation Project in Sri Lanka to mobilize finance for climate adaptation solutions in the agriculture and tourism sectors. The Bank also signed a Memorandum of Understanding with the University of Moratuwa to collaborate on the National Entrepreneurship Programme, marking a significant milestone for the Union Bank School of Social Entrepreneurship (UBSSE).