UB Finance performs strongly in challenging operating environment

UB Finance’s 2015/16 results have highlighted an impressive growth reflecting the development initiatives undertaken by the company to significantly strengthen their rapidly progressive position. These changes follow the landmark investment from TPG, the global private investment firm, in its holding company Union Bank. 

During the year 2015/16, UB Finance recorded a significant improvement in business volumes in comparison to the previous financial year. Income for the period increased by 64% to Rs. 1,055 million and the total operating income for the period also increased by 104% to Rs. 508 million. The profit for the year 2015/16 was Rs. 78 million in comparison to Rs. 12 million in 2014/15. The company has continued to invest in brand and capacity building during the year which would lead to substantial returns in the future.

Amidst the innumerable challenges that befell the industry, UB Finance remained resilient and the company’s asset base grew phenomenally during the year far exceeding the growth rate of the financial services sector. The depositor base increased from Rs. 2,825 million to Rs. 4,236 million being a 50% increase, highlighting the confidence placed by depositors in the company. Loans and receivables from customers grew from Rs. 3,729 million to Rs. 6,479 million, an increase of 74% due to the substantial investment in channel development and networking. The total assets increased by 67%, with the asset base standing at Rs. 8,222 million as at 31 March.

UB Finance Chairman Alex Lovell expressed his satisfaction over the results during the year. He stated that the progress the company achieved during this period will provide a positive platform to leverage sustainable growth in the forthcoming year and help UB Finance to successfully journey towards its aspirations of positioning itself as the preferred financial services provider. 

Noteworthy upward momentum was highlighted in the company’s expansion initiatives with the addition of three new branches during the last quarter taking its foot print to 16. In line with its mandate to deliver greater convenience to customers, UB Finance revamped its product and service offering to support the changing needs and lifestyles of customers. Its portfolio includes investment solutions such as fixed deposits and savings coupled with financial solutions in the form of leasing, vehicle and mortgage loans as well as working capital solutions through factoring, cheque discounting and easy drafts. Several new products will also be launched in the near future. The launch of a dedicated, fully functional UB Finance Premier Factoring Service Centre in Colombo 4 will also support the company to significantly grow its factoring business and promote better customer engagement.

Technology continues to be a key enabler for UB Finance and significant investment were made to upgrade the existing systems as well as introduce new systems resulting in greater efficiencies in processes and delivery systems. New measures were also introduced to simplify formalities, improve efficiencies and processes and robust marketing campaigns were launched to build a stronger corporate presence. UB Finance also aligned its talent pool to deliver the best value and service which supports its vision of being Sri Lanka’s preferred financial solutions provider.

UB Finance Chief Executive Officer Ransith Karunarathne expressed his satisfaction over the commendable performance of the company. He stated, “We are pleased to see the recent restructuring and development efforts have yielded a robust performance and have helped give the company a significant boost to gear up to meet the challenges of the future. The positive trajectory of the company’s profits is certainly very encouraging for it reflects the potential and ability for us to continue to emerge as a strong performer in the Industry.”

UB Finance has a reputation for strength and stability within the financial services arena which is supported through its competitive edge of being the first finance company in Sri Lanka to be backed by a private sector commercial bank. As a Union Bank company, UB Finance leverages on the expertise of Union Bank for guidance in operations.