Union Status

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.