Union Bank sets its sights on enhancing customer propositions
View(s):Union Bank of Colombo PLC (Union) has set its sights on enhancing customer propositions along with alternate channels to aid its branch expansion. ”In this regard we rolled out an offsite ATM and digital banking strategy,” Indrajit Wickramasinghe, CEO Union told the Business Times. The bank’s post tax profit for the quarter is Rs. 80.4 million a 220 per cent increase year on year (YoY) with its total operating income growing by 16 per cent YoY to Rs. 766 million. Net interest income (NII) of Rs. 443.8 million was recorded a 16 per cent reduction over the comparative period ended 31st March 2015 due to a higher investment made in Unit Trusts of which the return is reflected in net trading income along with the narrowing margins, a Union media release said.
“Profitability was strengthened by much improved net fee and commission income, net gains from trading as well as other operating income. The bank’s net fee and commission income stood at Rs. 61.7 million at the end of Q1 2016, an increase of 146 per cent over the comparative period with fee income from business lending, cards and trade transactions being the primary contributors of the said impressive growth. Net gains from trading led by investments in unit income recorded a growth of Rs. 115.3 million Year on year. The bank does not have any exposure to the equity market.”
The bank remains well capitalised within the minimum regulatory requirements, with Tier 1 Ratio of 24.9 per cent and Tier 2 Ratio of 24.5 per cent, it added. The bank’s balance sheet expanded by 7 per cent during the 3-month period to reach Rs. 75,823 million in comparison to 31s December 2015. Loans and advances grew by 7.8 per cent to Rs. 43,259 million while the customer deposits reflected a growth of 13 per cent to Rs. 42,598 million. The group’s post tax profit for the quarter was Rs. 142.5 million in comparison to Rs. 37.8 million. The total assets of the group grew by 7 per cent during the 3-month period to reach Rs. 82,078 million, while the customer deposits reflected a growth of 12 per cent amounting to Rs. 46,633 million.