Union Bank records Rs. 135 mn PBT in first quarter of 2024

Union Bank said it encountered mixed challenges in its financial performance during the first quarter of 2024, which however reflected strong credit growth and brand investment.

The bank’s results from operating activities was Rs. 280 million and Profit Before Tax, including the equity accounted share of subsidiaries, amounted to Rs.  135 million, and the Profit After Tax was Rs. 48.6 million for the quarter.

In 1Q24, the total operating income of Union Bank experienced a reduction of 9 percent to Rs. 1,869 million, compared to the corresponding period of 2023, primarily attributed to decreased spreads in the treasury and loan portfolios.  

It noted that adverse impacts from LKR appreciation led to a decline in exchange related income by Rs. 82 million. Impairments was Rs. 295.3 million, reflecting a reduction  due to improved collections. Operating expenses were effectively managed at Rs. 1,294 million, representing only a 7 percent increase. 

As of 31 March 2024, the Bank’s Total Assets amounted to Rs. 128,534 million. Notably, loans and advances exhibited a positive trajectory, experiencing a 7 percent increase to reach Rs. 66,742 million, indicative of an improved economic environment. 

Customer deposits demonstrated robust growth, rising by 4 percent to Rs. 91,489  million, reflecting favourable market sentiment and customer confidence. 

CASA ratio was 23.3 percent. Stage 3 loans ratio was at 11.35 percent with a significant amount being collatarised. Total Capital Ratio was 16.85 percent as of 31 March  2024, well above the regulatory requirements. 
Union Bank Group consisting of National Asset Management Ltd & UB Finance Company Ltd, reported a PBT of Rs. 152 million and a PAT  of Rs. 48.98 million with the bank share being 95 percent.