Sri Lanka’s Union Bank March net up 71-pct

COLOMBO (EconomyNext) – Sri Lanka’s Union Bank said group net profit rose 71 percent to 32 million rupees in the March 31, 2015 quarter from a year ago on strong loan growth and better interest margins and income.

Net interest income rose 60 percent to 615 million rupees as interest income rose two percent to 1.1 billion rupees while interest costs came down sharply, by 28 percent to 526 million rupees, a stock exchange filing said.

Fee income grew nine percent to 62 million rupees while provision for bad loans fell 44 percent to 40 million rupees.

Union Bank group diluted earnings per share were two cents for the March quarter.

At bank level, net profit grew by 228 percent to 25.1 million rupees from the year before.

"The bank recorded a significant increase in revenues for the 1Q15 in comparison to the
corresponding quarter in 2014," a statement said.

Total operating income for the March quarter grew by 46 percent to 662.5 million rupees from the year before.

"The primary reasons for this were the strong growth in loans and advances, improvement in margins and the quality of the loan book," the statement said.

Union Bank said its business strategy was being transformed after it was bought by Culture Financial Holdings, an affiliate of private equity fund, TPG Capital Management LP, in 2014.
 

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