Union Bank Demonstrates Robust Financial Performance: Records LKR 17,314 Million Overall Income in 9 Months Ending September 30, 2023

In a commendable display of financial resilience, Union Bank exhibited robust performance during the nine months ending September 30, 2023. The bank reported a substantial 36% increase in overall income, reaching LKR 17,314 million compared to the corresponding period, showcasing a notable improvement in core banking performance.

Key drivers of this impressive growth included a 19% surge in Net Interest Income (NII) to LKR 4,822 million, propelled by enhanced yields from the loan portfolio and treasury assets. Net Fee and Commission Income also experienced a commendable 9% increase, driven by the contributions of credit cards, remittances, and heightened activity in the trade business.

Despite prudent cost management initiatives, the bank faced a 22% rise in Total Operating Expenses to LKR 3,838 million. This increase was primarily attributed to significant escalations in utility tariffs, salaries, and exchange-impacted general expenses. However, the bank's Total Operating Income before impairments showed a positive growth of 11%, reaching LKR 6,185 million.

The Bank's Profit Before Tax (PBT), including its equity accounted share of subsidiaries as of September 30, 2023, saw a remarkable 81% increase, amounting to LKR 717 million. The Profit After Tax (PAT) also surged by 65%, reaching LKR 375 million during the same period.

Union Bank maintained a robust liquidity position, with the Liquid Asset Ratio standing at 39.16%, and the Liquidity Coverage Ratio impressively at 878%, exceeding regulatory requirements. The Bank's Total Assets as of September 30, 2023, stood at LKR 130,319 million, with Loans and Advances amounting to LKR 63,204 million.

In a broader context, the Union Bank Group, which includes UB Finance Company Ltd. and National Asset Management Ltd., recorded an overall improved performance. The Group witnessed a substantial 57% increase in Profit Before Tax (PBT), totaling LKR 825 million, and a 52% rise in Profit After Tax (PAT), amounting to LKR 459 million for the period up to September 30, 2023. The total Assets of the Group reached LKR 138,519 million, with the Bank's share accounting for over 94%. Union Bank's commendable financial results underscore its resilience and strategic financial management in a dynamic economic landscape.

In conclusion, Union Bank's financial report for the nine months ending September 30, 2023, paints a picture of commendable resilience and strategic management in the face of economic dynamics. The bank's impressive 36% increase in overall income, driven by robust performances in Net Interest Income and Net Fee and Commission Income, reflects its ability to navigate challenges and capitalize on opportunities.

Despite facing a 22% rise in operating expenses, Union Bank's prudent cost management initiatives and positive growth in Total Operating Income before impairments underscore its commitment to financial stability. The noteworthy increase of 81% in Profit Before Tax and 65% in Profit After Tax signifies not only a strong financial performance but also effective decision-making in a complex financial landscape.

Maintaining a robust liquidity position with Liquid Asset Ratio at 39.16% and Liquidity Coverage Ratio exceeding regulatory requirements at 878%, the bank showcases a commitment to stability and regulatory compliance.

Looking beyond the bank's individual performance, the Union Bank Group's impressive results further affirm the synergies within its subsidiaries, reflecting a comprehensive and integrated approach to financial management.

In essence, Union Bank's financial achievements for this period highlight its adaptability, resilience, and capacity to thrive in a dynamic economic environment, positioning itself as a reliable player in the banking sector.