Union Bank posts Rs 50 m profit in H 1

Union Bank has reported a significant upturn in its performance for the half year ended June 30, 2010.

The Bank's pre-tax profits improved by 65 percent to record Rs 110.3 million up from Rs 66.8 million for the period ended June 30, 2009 whilst post-tax profits increased by 54 percent to Rs 50 million corresponding to the results achieved for the identical period last year.

Net interest income increased by 54 percent over the preceding year. Similar growth was also achieved in the Bank's core activities.

Gross loans and advances increased by 16 percent year on year to reach Rs 9.2 billion whilst deposits increased to Rs 12.6 billion as at June 30, 2010.

Union Bank Chairman Ajita de Zoysa expressed satisfaction over these results and stressed that these were achieved despite a re-pricing of assets and liabilities against a back-drop of declining interest rates and sluggish market conditions. He said the Bank's future potential and its ability to emerge as a strong performer in the Industry following the recent fresh capital infusion of Rs two billion partly subscribed by the Genting Group, Malaysia.

The Bank is strategically positioned to embark on an aggressive growth strategy in addition to surpassing the regulatory minimum capital requirements for commercial banks.