Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

Submit Post
සිංහල පරිවර්තනය

Display results as :


Rechercher Advanced Search

Latest topics

» Ainv pchh lcem
by point Yesterday at 10:57 pm

» AEL Declines to 20.9
by point Yesterday at 8:23 pm

» Wiser's TA Chart Room
by EquityChamp Yesterday at 7:56 pm

» COCR can be attractive
by EquityChamp Yesterday at 7:43 pm

» LLUB for short term?
by EquityChamp Yesterday at 7:35 pm

» CFVF will cross 34/= level today ...
by EquityChamp Yesterday at 7:30 pm

» Where is Teller?
by EquityChamp Yesterday at 7:21 pm

» MACD A Powerful Tool to Predict Market Trends
by EquityChamp Yesterday at 7:14 pm

» ! CSF.N.0000 | 697 Millions Rights ..
by Chanuque Thu Mar 22, 2018 11:25 pm

» Earn 1.5% daily interest.. guaranteed..
by Gallardo Thu Mar 22, 2018 11:12 pm

» Daily News Bulletin | දිනපතා ප්‍රවෘත්ති
by Sstar Thu Mar 22, 2018 3:34 pm

» CDB, Collect or Sell?
by ranferdi Thu Mar 22, 2018 1:43 pm

by Gallardo Thu Mar 22, 2018 1:31 pm

by Eugine Fernando Thu Mar 22, 2018 12:42 pm

» ? Your Point Of View Before Telling My Experience ..
by Chanuque Thu Mar 22, 2018 11:32 am

by nirowat Wed Mar 21, 2018 10:08 pm

by thankrishan Wed Mar 21, 2018 4:57 pm

» CDB - Jounery Begun..
by mtsfernando Wed Mar 21, 2018 4:21 pm

» Market Sell Off
by DS Wijesinghe Wed Mar 21, 2018 1:18 pm

» Marriott International to open its first Sri Lankan hotel in 2014
by mahasona Wed Mar 21, 2018 12:09 am

Forum Disclaimer

The information contained in this forum have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever.

Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Union Bank records impressive 9 months’ performance in 2017 (UBC)

Union Bank records impressive 9 months’ performance in 2017 (UBC)

Go down  Message [Page 1 of 1]


Manager - Equity Analytics
Manager - Equity Analytics
26[size=9]th October 2017< Back to News in 2017

Results at a Glance

Group Performance

  • Net Interest Income up 37% YoY to Rs. 2,789Mn
  • Net Fee and Commission Income up 14% YoY to Rs. 607Mn
  • Total Operating Income grew by 18% YoY to Rs. 3,943Mn
  • Profit before Tax grew by 26% YoY to Rs. 560Mn
  • Total Assets grew by 24% YTD to Rs. 124,648Mn

Bank’s Performance

  • Net Interest Income up 40% YoY to Rs. 2,319Mn
  • Net Fee and Commission Income up 21% YoY to Rs. 495Mn
  • Total Operating Income grew by 24% YoY to Rs. 3,297Mn
  • Results from Operating Activities grew by 56% YoY to Rs. 631Mn
  • Profit before Tax grew by 44% YoY to Rs. 437Mn
  • Total Assets grew by 25% YTD to Rs. 116,299Mn
  • Strong Balance Sheet with Total Capital Adequacy Ratio at 19%


Core Banking Growth and Profitability

In the third quarter of 2017, Union Bank continued its strong growth momentum, adding further traction to its strategic business focus of core banking growth and profitability.
As a result of focused efforts on portfolio expansion, the Bank’s Loans and Advances grew by 22% Year to Date (YTD). The Net Interest Income (NII) rose to Rs. 2,318Mn in the 3rd quarter of 2017- an impressive increase of 40% Year on Year (YoY). During the period under review, the Bank continued to focus on improving NII through prudent management of the Net Interest Margin (NIM) coupled with Total Asset growth.
Union Bank’s well executed strategic initiatives for Fee Income growth continued throughout the reporting period, resulting in a healthy growth of Net Fee and Commission Income to Rs. 495Mn, a 21% increase YoY. This can be mainly attributed to the increase in Trade and Remittances related fees, Deposit related fees as well as Loan processing fees collected during the reporting period.
The Bank’s Treasury performance was notable and recorded Rs. 106.1Mn surge in capital gains YoY, which is a significant increase of 88%. A change in the Asset Mix of the Bank resulted in a dilution of the Net Trading Income as funds were shifted to Interest Earning Assets from Investments in Units, triggering a resultant decline in the income from investment in units by 45% YoY to Rs. 193Mn. Consequently, the Total Trading Income decreased by 15% to Rs. 300Mn. Other Operating Income fell by 24% YoY to report Rs. 182Mn, largely due to the decline in foreign exchange income.
Stemming from the overall growth in core banking activities, the Total Operating Income of the Bank continued to rise, reporting Rs. 3,296Mn a sharp increase of 24% YoY.
Supporting the strong Balance Sheet growth, Operating Expenses of the Bank increased to Rs. 2,454Mn, reporting a 11% growth YoY. The Impairment charge for the period increased by Rs. 173.2 Mn. However, the Gross NPL ratio remained low at 2.5% while the Net NPL ratio was reported at 1.7%.
The Bank’s Results from Operating Activities increased by 56% YoY to record Rs. 630Mn, reflecting the successful execution of its strategic initiatives which emphasized core banking growth. Profit after Tax for the period was Rs. 341Mn, 6% growth YoY. The YoY PAT growth was impacted due to one-off income recorded from subsidiaries during the comparative period last year.
Total Assets of the Bank grew to Rs. 116,299Mn, a 25% growth YTD. Corresponding to this growth, the Loans and Receivables of the Bank grew to Rs. 67,391Mn, a 22% increase YTD. In line with the Bank’s strategic priority to expand its liability product portfolio, Customer Deposits saw a further build up by 30% YTD, reporting Rs. 67,398Mn as at end of September 2017. The continued focus on strategic CASA development initiatives resulted in the CASA portfolio growing by a significant 23% YTD.
The maintenance of strong capital ratios continues to be a management priority. Union Bank’s Total Capital Adequacy Ratio as at 30th September 2017 was 19%, well above the regulatory requirements.
The Group comprising Union Bank, National Asset Management Limited and UB Finance Company Limited, recorded a 37% increase in Net Interest Income to Rs. 2,789Mn. Net Fee and Commission Income of the Group grew by 14% YTD to Rs. 607Mn. The Profit after Tax recorded by the Group for the period under review was Rs. 410Mn.

Operational Performance

Continuing on the envisioned growth trajectory, Union Bank focused its strategic investments on expansion and enhancement of banking services in the third quarter of 2017.
In August 2017, Union Bank in keeping with its Digital Banking Strategy announced the launch of its Mobile Banking Application with the aim to offer an easy, quick and convenient banking experience to its clients. Union Bank’s all new Mobile Banking app offers a host of services that include general lifestyle services in addition to the banking services which are typically offered; making it a versatile and ingenious application even for non-customers. This is another significant step in the direction of digitalization of financial services on which Union Bank will continue to invest, in-step with the rapidly evolving banking landscape of the country.
Union Bank’s customer reach was further expanded in the 3rd quarter of 2017 with the opening of its 66th branch in Peradeniya, marking a significant milestone in its commitment towards the financial progress of individuals and businesses in the Central Province. In line with its premise to deliver a differentiated banking experience, the Bank relocated its Gampaha branch, presenting a customer centric layout, spacious banking facilities and a vibrant atmosphere to further strengthen its commitment to this strategically important region in the Western Province.
The restructured Treasury function performed well in the 3rd quarter, contributing to the strong net interest income and other income growth in the 3rd quarter. The advisory role played by Treasury was also highly valued and appreciated by the customers.
As a result of its intense efforts to expand the Retail lending portfolio, the Bank’s Personal Loans base grew by 75% YTD, as at end September 2017 making a commendable contribution to the impressive overall Retail Loan growth of 73%.
In line with its focus on building Current and Savings (CASA) balances, Union Bank continued the momentum of portfolio build-up of key products such as Children’s Savings, Investment Planner and Institutional CASA, with intense sales drives through branches, Relationship Managers and dedicated sales teams to pursue new acquisitions. As a result, the CASA base of the Bank grew by 23% YTD as at end September 2017.
The Bank’s continued momentum of Assets growth resulted in SME Loan book growth of 9%, while the Corporate Banking loan book expanded by 18% by the end of September 2017.
Adding value to the banking experience of its account holders, the Bank continued to offer attractive savings and discounts of up to 30% on the Union Bank Visa International Debit Shopping Card for lifestyle related purchases.
Adding further traction to its valued banking relationships, Union Bank continued to extend its full-fledged cash management solution, Union Bank Biz Direct, to leading corporates and SMEs in the country. The Bank hopes to further capitalize on this unique solution, in order to deliver a differentiated banking experience to its existing and potential clients.
Staying true to its roots as a dedicated financier for Lankan entrepreneurs, in September 2017 Union Bank came forward as the Premium sponsor of the 25th Annual Export Awards organized by the National Chamber of Exporters (NCE) of Sri Lanka for the 3rd consecutive year. As the Premium sponsor, the Bank partnered the awards for ‘Best Performer in Emerging Markets, Best SME Exporter, Best Value Added Exporter – Services and Best Value Added Exporter – Products’, categories; thereby reinforcing Union Bank’s continuous commitment towards the development of the export potential in the country.
Continued efforts for operational efficiency and enhanced productivity through streamlining of processes resulted in improved cost management during the period under review.
Marking a significant turning point in data security protection, Union Bank became the first bank in Sri Lanka to receive the international Payment Card Industry Data Security Standard (PCI DSS) by the Security Standards Council in September 2017. The PCI certification is a robust assurance of Union Bank’s data security standards across all systems and processes through which card and account transactions are effected.
Union Bank was conferred three prestigious awards for excellence at the CMO Asia Awards 2017, which concluded in Singapore in August 2017. At the CMO Social Media and Digital Marketing Awards 2017 the Bank won the title for Best Facebook Campaign within the Banking sector in Sri Lanka while at the Asia Banking, Financial Services and Insurance Awards Union Bank managed to clinch two titles for Sri Lanka namely:

  • Bank with the Best Customer Orientation
  • Bank with the Best Technology Orientation

Union Bank’s encouraging financial position was further endorsed by Fitch Sri Lanka with the reaffirmation of the Bank’s current rating with a positive outlook.
Commenting on the Bank’s performance Director/CEO Indrajit Wickramasinghe said “I am happy to share this impressive performance up to the end of the 3rd quarter for Union Bank, which is a clear affirmation of the Bank’s focused strategy to win market share through profitable and inclusive expansion in terms of product portfolios, geographic reach and technological lead. We are confident that we will be able to build on these results to deliver on the anticipated growth objectives in the final lap of this year.”[/size]


Manager - Equity Analytics
Manager - Equity Analytics
UBC Might go up Sharply....

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum