Sri Lanka’s Union Bank March 2018 net up 37-pct
ECONOMYNEXT – Profits at Sri Lanka’s Union Bank grew 37 percent from a year earlier to 130.2 million rupees in the March 2018 quarter, on improving fee and commission revenue and investment incomes, interim accounts showed.
The bank reported earnings of 12 cents a share. The stock was trading at 14.20 rupees Monday.
Interest income grew 25 percent in the quarter to 2.9 billion rupees, interest expenses grew at a faster 31 percent to 2.06 billion, with net interest income growing 11 percent to 853.5 million rupees.
"Net interest margins for the quarter under review would have seen a higher growth if not for the interest expense on investments in units, the income in respect of which has been recognized as a capital gain under trading income," Union Bank told shareholders.
Net trading income grew 138 percent from a year earlier to 116.3 million rupees in the March 2018 quarter. Net gains from financial investments grew 821 percent to 58 million rupees.
Net fee and commission income grew 19 percent to 196.8 million rupees.
The bank made a provision of 109 million rupees for loan losses, up 16.7 percent from a year earlier.
Union Bank’s deposit base declined 2 percent from the previous quarter to 69 billion rupees in the March 2018 quarter, its loan book grew flat to 70.7 billion rupees.
“Strengthened by its three-year growth strategy, Union Bank is now ready to take on the next phase of its expansion and growth," said Indrajit Wickramasinghe, Union Bank’s CEO. (COLOMBO, 01 May 2018)