He further stated that these results were commendable as they were achieved in a very challenging environment where policy restrictions highlighted limitations on areas such as credit thus impacting the banks planned expansion initiatives. Union Bank is investing significantly in brand building, technology and network expansion. During 2012 it commenced implementation of a new core banking system which will place Union Bank at the helm of information technology capabilities in the banking industry, as well as an advanced Risk Management System.
The Group reflected Rs. 487.7 Mn, a 54.6 percent growth in profit after tax (PAT), resulting in an increase of Rs. 172 million in comparison to the previous year. Interest Income grew by 71.1 percent to Rs. 3.6 Billion and Net Interest Income increased by 37.8 percent. Loans and advances increased by 18.1 percent and compared well with the industry’s growth rates during the period. The asset base of the Group grew to Rs. 31.7 Billion as at December 31, 2012 recording a 19 percent growth which indicated continued acceleration of development financial activities. Total Deposits of the group also grew by 19 percent.
Alex Lovell, Chairman of Union Bank of Colombo PLC, expressed his satisfaction over the commendable performance of the group. He stated that "The positive trajectory of the group’s profits is certainly very encouraging for all as it reflects the potential and ability for us to continue to emerge as a strong performer in the Industry." Leveraging the strengths of its subsidiaries NAMAL and UB Finance has been a significant contributor to these positive results.
With a comprehensive product range, UB Finance is geared to be a key partner in Sri Lanka’s accelerated growth strategy to deliver economic and social value to the groups key focus segments especially the small sector. The Bank’s investment and wealth management arm, NAMAL (National Asset Management Limited), continued to highlight superior performance and its equity funds gained the number position in the industry during 2012, the bank said in a statement.