Union Bank records resilient performance in 3Q | Daily News

Union Bank records resilient performance in 3Q

Chairman Atul Malik and Director, CEO Indrajit Wickramasinghe
Chairman Atul Malik and Director, CEO Indrajit Wickramasinghe

The operating income of the Union Bank for the third quarter was Rs. 1,692 million, and reduced by 3% over the comparative quarter. The total operating expenses reduced by 5% QoQ to Rs. 941 million. Consequently, Pre-impairment profits of the Bank were Rs. 751 million for the quarter and were similar to that of the comparative quarter.

Union Bank recorded subdued results from operating activities of Rs.470 million a decline of 12% over the comparable quarter.

YTD operating income of the Bank was Rs. 4,643 million and was similar to that of the comparative period. The total operating expenses were prudently managed through bank-wide cost management initiatives and reduced by 4% YoY to Rs. 2,855 million. Consequently, Pre-impairment profits of the Bank were Rs. 1,787 million for the period and indicated a 7% growth over the same period last year.

Average fixed deposits remained stable whereas average CASA ended at Rs.23, 805 million, with an increase of 18% over the comparative period.

The treasury performed notably within the period under review, recording impressive trading profit, capital gains with a significant YoY increase of 108%.

Bank including its share of ownership in its subsidiaries, was able to increase its PAT by 3% YoY. Total comprehensive income for the Bank YTD was Rs. 812 million.

NPL ratio of the Bank was reported as 5.48% by end of the reporting period compared to 5.03% as of last year. Total assets of the Bank stood at Rs. 122,291 million as at September 30.

The Bank’s loans and receivables stood at Rs. 71,333 million YTD while the deposits base was Rs. 81,958 million and expanded by 7% during the period.

The Bank continued to maintain its capital adequacy ratios well above the regulatory requirements and reported a robust Capital Adequacy with a Total Capital Ratio of 16.26% as at the reporting date.

The Group consisting of the Bank and its two subsidiaries, UB Finance Company Limited and National Asset Management Limited reported a Profit before all taxes of Rs. 1,306 million for the period.The PAT of the Group in comparison to the corresponding period last year declined by 5%.Total assets of the Group were Rs. 129,008 million of which 95% was represented by the Bank.

Bank has granted Rs 1.3 billion working capital loans under Central Bank’s ‘Saubhagya’ concessionary credit scheme to SMEs.

Director, Chief Executive Officer of Union Bank Indrajit Wickramasinghe said, “We have placed a steady focus on maintaining a healthy liquidity position while engaging with our customers to provide them with the necessary impetus to navigate through these difficult times.

The third quarter results display the resilience of Union Bank against a challenging landscape.”