Union Bank further consolidates its SME focus
View(s):Union Bank has reported a reported a post-tax profit of Rs.62.9 million for the first three months of 2013 amidst what it calls “challenges in the banking sector”.
In a media statement, the bank said it has seen progress in its core banking operations recording growth in its loans and advances of nine per cent resulting from an increase in the loan portfolio to Rs.21.9 billion. Total deposits also increased by seven per cent to Rs.25.3 billion during the same period.
Interest income grew by 34 per cent while, due to the increase in the deposit base and the interest rates, interest expense also reported a 70 per cent increase.
A reduction of Rs. 49 million in foreign exchange income was recorded in comparison to the first quarter of 2012 due to the stabilisation of the Rupee. Union Bank’s Director/CEO Anil Amarasuriya said they want to become the ‘SME Bank’ in Sri Lanka because “we know our fundamentals are apt for us to add value to this consumer sector”.
This, he added, is in line with the bank’s vision of becoming the preferred bank for Small and Medium entrepreneurs.
The bank has rapidly expanded its presence, taking its total network to 38 branches by May 2013 and aims to expand the network to 50y branches by end-2013.
Mr. Amarasuriya said Union Bank’s has invested over Rs. 600 million in a new Core Banking System, which will complete rollout this year. This will help to give the bank a significant upward momentum in technological advancements.
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