Union Bank reported a significant upturn in its performance for the half year ended June 30, 2011.
The Bank's after-tax profits improved by 157.3 percent to record Rs 128.7 million up from Rs 50 million of period ended 30 June 2010, whilst pre-tax Profits increased by 56.6 percent to Rs 206.8m in comparison to the corresponding period of last year. Net interest income increased by 35.9 percent to 154.7 million over the preceding year.
Similar growth was also achieved in the Bank's core activities.
Gross loans and advances increased by 28.2 percent during the six months to reach Rs 12.9 billion whilst total deposits increased to Rs 14.8 billion as at June 30, 2011.
Gross non performing advances ratio improved to 6.05 percent from 9.19 percent of June 2010. Overall, the group highlighted an after tax profit of Rs. 132.7 million. Union Bank Director and CEO Anil Amarasuriya expressed satisfaction over these results and stressed that these were achieved against a back drop of declining interest rates.
He emphasized on the Bank's future potential and its ability to emerge as a strong performer in the industry.
Following the Bank's successful Initial Public Offering, the Bank is now strategically positioned to embark on an aggressive growth strategy in addition to comfortably surpassing the regulatory minimum capital requirements for commercial banks.
Amarasuriya said the Bank is investing significantly in brand building and network expansion as well as value additions to its existing product portfolios and launching of new products in order to provide superior service delivery to a wider customer base and penetrating new markets.
The Bank's primary focus is to be the preferred Bank for the SME and Retail sectors, he further added.
The Bank's branch network now stands at 26 with seven branches located in North and East with three new branches opened during the second quarter.
In furtherance of its new strategic direction and expansion policy Union Bank embarked on a diversification plan which highlighted positive strides in a short period of time with the Bank acquiring Sri Lanka's premier asset management company-National Asset Management Limited in February 2011 and recently receiving approval from the Central Bank of Sri Lanka to acquire TF&G a registered finance company.
This acquisition fits in well with our diversification and expansion policy to increase focus and growth in the SME sector, hence we earmark this acquisition as yet another stepping stone to further penetrate the small enterprises segment, Amarasuriya said.
source - www.dailynews.lk
No comments:
Post a Comment