Union Bank: 37% growth in post-tax profit in 1Q18

Union Bank has reported a pre-tax profit and VAT of Rs 246 million in the first quarter 2018, up by 47 per cent from the same 2017 quarter, the bank said in results released to the market.

“A significant growth in core banking operations contributed to the robust performance of the bank during the period under review, while prudent cost and revenue management drove growth in profits over the corresponding period in 2017,” it said.

Fee and commission income which mainly comprises of deposit related fees, trade and remittances, loans, cards and other fees increased by 18 per cent to Rs. 224 million

“A strong performance by the Treasury function resulted in capital gains of Rs. 69 million against Rs. 11 million in the corresponding period last year. Total operating income rose to Rs. 271 million,” the statement said.

Post-tax profit was up by 37 per cent to Rs. 130 million.

The group, comprising the bank and its two subsidiaries, UB Finance Company Ltd and National Asset Management Ltd reported a post-tax of Rs. 154 million, up by 28 per cent year- on-year.

Commenting on the latest results, Union Bank’s Director/CEO Indrajit Wickramasinghe said, “strengthened by its three-year growth strategy, Union Bank is now ready to take on the next phase of its expansion and growth”.