Union Bank records resilient performance in 3Q
View(s):Union Bank Group continued to focus on its prudent cost and portfolio management strategy to remain resilient amidst a volatile macro-economic landscape that prevailed in the third quarter of the year (July-September 2020).
The group consisting of the bank and its two subsidiaries, UB Finance Company Ltd and National Asset Management Ltd reported a Profit before tax of Rs. 1,306 million for the period.
The Profit after Tax of the group in comparison to the corresponding period last year declined by 5 per cent. Total assets of the group were Rs. 129,008 million of which 95 per cent was represented by the bank. The group maintained a healthy Core Capital Ratio of 16.41 per cent as at the reporting date, the bank said in a media release.
Due to the bank’s policy to support its customers during these tough times and a decline in interest rates, its Net Interest Margin (NIM) declined from 3.8 per cent to 3.3 per cent over the comparative period.
Amidst the challenging environment, the operating income of the bank for the quarter fell by 3 per cent from the same 2019 period to Rs. 1,692 million.
Operating income of the bank was unchanged from third quarter 2019 at Rs. 4,643 million.