Union Bank, which says it is further strengthening its position as one of Sri Lanka's fastest growing banks, has reported an upturn in its performance for the period ended 31st March 2012.
The bank's operating profit before VAT and corporate tax improved by 21.4 % recording Rs 142.7 million up from Rs 117.5 million in the period ending 31st March 2011. Net interest income increased to 295.7 million highlighting a 24.6% increase over the preceding year, according to a bank statement.
Meanwhile the bank got a new chairman this week after Ajitha de Zoysa retired from the post in line with corporate governance rules under Central Bank guidelines. He has been replaced by Alex Lovell, earlier Deputy Chairman of the bank. Further the bank said Asoka de Silva, a senior bank director, has been appointed as Deputy Chairman. Board directors Ananda Athukorala and Ajith Wijesekera are also retiring from the bank from May 7 under the same corporate governance rules of the Central Bank.
Similar growth was also achieved in the bank's core activities. Gross loans and advances increased by 11.9% during the three months to reach Rs 19.2 billion recording a 64% growth in comparison to March 2011. Total deposits increased to Rs 20 billion as at 31st March 2012.
Anil Amarasuriya, Director / CEO of Union Bank expressed satisfaction over these results and stressed that these were achieved against challenging market conditions. He emphasized on the bank's future potential and its ability to emerge as a strong performer in the industry.