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Wed, 01 April 2015 14:48:26
Sri Lanka's Union Bank profits higher
04 Nov, 2011 08:34:26
Nov 04, 2011 (LBO) - Sri Lanka's Union Bank reported group net profits of 65.8 million rupees for the September 2011 quarter with profits of its asset management subsidiary being consolidated.
The group reported earnings of 19 cents for the quarter and 57 cents for the nine months.

At stand alone bank level profits rose 6.1 percent to 62.6 million rupees in the September quarter from a year earlier, with loan loss provisions coming down.

At bank level, interest income rose 17 percent to 533.7 million rupees, and interest expenses rose at a faster 18.4 percent to 281 million rupees.

Net interest income grew at a slower 15.5 percent to 251.9 million rupees.

The bank said loans grew steeply to 14.9 billion rupees in September from 9.0 billion in December 2010. Non-performing loans fell to 763 million rupees from 1,012 million rupees.

Loan loss provisions fell to just 412,000 rupees from 15.6 million a year earlier.

Fee income fell 27.5 percent to 99.2 million rupees with unspecified other income falling 29.7 percent to 86.1 million rupees.

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4. Analyst Nov 04
That's true when you look at it P/E wise. Banks like NTB seem to offer better value. However smaller banks like UBC and PABC can grow faster than the others due to the low base. UBC has also shown some aggressive acquisitions by taking over NAMAL and TF&G finance company. They have also applied for a stock brokering license therefore can show exponential growth EPS wise.
3. Mahisha Nov 04
Another way (which I prefer) to value Banking and Finance companies is to use the Price / Book Value...

"Price/book value is most often useful with sectors in which the value of a company depends largely on what assets it owns and those assets are accurately recorded in the accounts."

2. Andare Nov 04
@Investor: Good point. It seems the stats speak of itself for UBC.
1. Investor Nov 04
Despite UBC share price more than halving from debut at Rs45 to current price of around Rs20, which is even below IPO price of Rs25, UBC still does not offer as good value as other banking sector stocks.

Even annualising UBC's quarterly EPS, gives an annual EPS of only 80 cents, resulting in a PER of over 20 times earnings for UBC.

Some other banking shares are now available on under 10 times earnings.