Sri Lanka’s Union Bank 1H profits up 211 pct to Rs60mn: Interim Report

July 23, 2015 (LBO) – Sri Lanka’s Union Bank said net profit rose 211 percent to 60 million rupees in the first half to June 2015.

Interest income of the bank fell four percent to 1,905 million rupees while interest expenses also fell 31 percent to 865 million enabling net interest income to rise 43 percent to 1,039 million rupees, according to interim accounts filed with the stock exchange.

The operating expense of the bank reported 45 percent increase to 1,109 million rupees.

“This is mainly due to investments made with regard to customer reach expansion, technology and investments in staff, in keeping with the strategic changes taking place in the Bank.” The bank said in a separate release.

Loans and advances of the bank reported a 28 percent year to date growth. Loan book stood at 33,093 million rupees in comparison to 25,945 million rupees in December 2014.

The Bank says as a result of this, the total assets of the Bank grew by 14 percent to 55,825 million.

The bank’s individual impairment rose 208 percent to 43 million rupees while collective impairment fell 63 percent to 63 million rupees.

The bank’s interest margin fell to 3.97 percent from 4.20 percent a year ago.

Total deposits rose 8.5 percent to 30,397 million rupees in the first half of the bank as the bank reported 27,808 million rupees of deposits in December last year.