Union Bank posts strong performance in 1H’23
View(s):The first six months of the year marked improvements to Sri Lanka’s macro-economic landscape with inflation continuing to decrease and the IMF bailout followed by the Domestic Debt Optimisation (DDO) announcement, the Union Bank said in a statement while releasing its result for the 6-months to June 2023.
During the 1H2023, the bank recorded significant improvement in the core banking performance and posted an overall income of Rs. 11,729 million, which is an increase of 58 per cent over the comparative period in 2022.
The increase in the bank’s revenue is mainly attributed to the increase in the Net Interest Income (NII) which increased by 24 per cent to Rs. 3,118 million resulting from improved yields from the loan portfolio and treasury assets. The Treasury recorded significant contributions in the areas of GSEC Capital Gains and FX profitability. The bank does not hold any International Sovereign Bonds (ISBs), and the Sri Lanka Development Bonds (SLDB’s) held by the bank have matured and are awaiting settlement.
The bank’s Profit Before Tax (PBT) including its equity accounted share of subsidiaries as of June 30, 2023, increased by 76 per cent to Rs. 533 million and the bank’s Profit After Tax (PAT) also increased by a notable 94 per cent to Rs. 295 million.
The total assets of the bank stood at Rs. 128,904 million as of end June 2023. The bank maintained a strong liquidity position during the period under review. The CASA ratio improved to 25.19 per cent as of end June 2023, aided by macro-economic drivers backed by strong sourcing initiatives across all business segments.
The Union Bank Group, consisting of UB Finance Company Ltd., and National Asset Management Ltd, recorded an improved overall performance with 56 per cent increase in PBT amounting to Rs. 618 million and 77 per cent increase in PAT amounting to Rs. 364 million for the period up to end June 2023.
During the period under review, the bank initiated several customer acquisition programmes with focus on business expansion.
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