Union Bank records significant growth in the year 2016
View(s):Union Bank of Colombo PLC, together with its subsidiaries (group) has reported a post-tax profit (PAT) of Rs. 553 million in 2016, sharply up by 117 per cent compared to the previous year.
“Also in a milestone achievement, the group surpassed the Rs.100 billion mark in total assets, recording Rs.100.5 billion as at the year end. The impressive performance of the group despite a challenging macro environment that prevailed, signifies its strong strategic focus towards accelerated growth,” the bank said in a media release.
The strong performance of the bank resulted in Rs. 451.1 million PAT, highlighting the bank’s successful transition to a fully-fledged commercial bank with a wider focus on retail, corporate and SME sectors while ensuring productive deployment of capital, following the significant capital infusion that strengthened the bank in the latter part of 2014.
The bank’s fund-based operations, its principal source of income, recorded Rs. 2,507 million in 2016. Loans and advances rose to Rs. 55,438 million, up by 38 per cent in comparison to the previous year.
Customer deposit portfolio stood at Rs. 51,841 million.
“Operating expenses of the bank were Rs. 3,009 million which is a 30 per cent increase YoY as the bank continued to invest in strategic initiatives such as the expansion of footfall and reach, investments in technology and processes as well as human capital development during the year,” the release added.
The group, consisting of the bank and its two subsidiaries – UB Finance Company Ltd and National Asset Management Ltd reported “robust results in 2016, recording PAT of Rs. 553 million compared to Rs. 255 million reported in 2015.”
Commenting on the performance of the Bank, Director/CEO Indrajit Wickramasinghe stated “2016 was a year of continued progress and broad basing of the growth plans grounded in the previous two years, in which we were able to set a strong footing for an accelerated take-off in the coming years. While consolidating the multiple gains made last year in the form of revenue growth, portfolio expansion, process improvements, network development etc. our journey in the year 2017 will
be etched with greater emphasis on innovation, technology and an enhanced outlook. As we aim to take a bold leap towards further success, we invite our stakeholders to reap the maximum
benefits of this phase of growth and evolution of Union Bank.”