Sri Lanka’s Union Bank Sept net up 13-pct, strong asset growth
ECONOMYNEXT – Sri Lanka’s Union Bank group, said profits grew 13 percent from a year earlier to 150.9 million rupees in the September 2017 quarter, helped by stronger trading income, with gross assets up 25 percent since January.
The group reported earnings of 14 cents per share for the quarter. For the nine months to September it reported earnings of 35 cents per share on total profits of 384.3 million rupees, which were up 4 percent.
Interest income grew 37 percent to 3.16 billion rupees in the quarter, and interest expenses grew 14 percent to 2.24 billion rupees, and net interest expenses grew 14 percent to 921 million rupees.
In the nine months from January loans grew 20 percent to 75.75 billion rupees, despite higher interest rates in the country. Deposits grew 26 percent to 72 billion rupees.
Union Bank said its personal loan base grew 75 percent during the nine months, amid a total retail loan growth of 73 percent.
Specific loan loss provisions grew 81 percent to 82 million rupees and general provisions were increased to 28 million rupees from 4.8 million a year earlier.
Fee and commission income grew 10 percent to 215 million rupees. Trading income more than doubled to 180 million rupees from 77.2 million rupees.
Union Bank group assets grew 24 percent to 124 billion rupees in the nine months to September. Equity was up a slower 4 percent to 17.96 billion rupees. The bank said its total capital adequacy was 19 percent. (Colombo/Oct27/2017)