Union Bank delivers Rs. 1.2 b PBT for first nine months of 2025

Chairman Dinesh Weerakkody

Director/CEO Dilshan Rodrigo

Union Bank has reported an impressive financial performance for the nine months ended 30 September 2025, reaffirming its position as one of Sri Lanka’s fastest-growing private commercial banks. 

The bank posted a Profit Before Tax (PBT) of Rs. 1,178 million, an impressive 52% increase compared to the corresponding period of 2024. Profit After Tax (PAT) rose by an exceptional 194% to Rs. 343 million, underscoring the bank’s successful strategic execution and prudent financial management.

The bank’s gross income rose by 7% to Rs. 13,199 million, reflecting continued business expansion and improved earnings from both core and non-core activities. Net Interest Income (NII) increased by a healthy 11% to Rs. 3,981 million, supported by strong loan growth and effective margin management. Complementing this performance, Net Fee and Commission Income recorded an outstanding 39% growth to Rs. 1,133 million, driven by higher transactional volumes, digital channel utilisation, and trade-related services. As a result, Net Operating Income increased by 19% to Rs. 5,705 million.

Union bank’s results from Operating Activities improved significantly by 41% to Rs. 1,106 million, despite a 14% rise in operating expenses, reflecting continued investments in digital infrastructure and capacity building. This demonstrates enhanced operational efficiency and earnings quality.

Meanwhile, the Non-Performing Loan (NPL) ratio was maintained at a stable level, reflecting the bank’s robust credit risk management framework and proactive portfolio oversight, which have ensured high asset quality amidst a challenging operating environment. The bank’s Capital Adequacy Ratios remain within regulatory thresholds, reinforcing its prudent risk and capital management practices. The bank has also announced its intention to raise up to Rs. 3 billion through Tier II Basel III compliant debentures to reinforce its capital base and support future business growth.

The bank’s total assets grew by a robust 17% to Rs. 171,864 million as of 30 September 2025, reflecting solid balance sheet expansion. Loans and Advances increased by a remarkable 32% to Rs. 107,592 million, affirming its strengthened lending portfolio and continued support for businesses and individuals. Meanwhile, Customer Deposits grew by 8% to Rs. 111,895 million, underscoring growing customer confidence and deepening relationships across market segments. Total assets of the Group grew by 18% to Rs. 182,946 million.

Key operational highlights included the expansion of the bank’s product range with Junior Elite for children, Power HER for women entrepreneurs, and the introduction of Gold Loans alongside pawning. The bank also leveraged its BizDirect cash management solution to grow Small and Medium Enterprise (SME) businesses, while Corporate Banking focused on enhancing customer profitability. Advancing its digital agenda, the bank upgraded its core banking infrastructure and mobile app, reaffirmed its PCI-DSS certification, and partnered with Mastercard to enhance digital payment solutions.

Director/CEO Dilshan Rodrigo said: “Union Bank’s exceptional performance in the first nine months of 2025 is a testament to our unwavering commitment to growth and customer-centricity. We remain focused on leveraging technology, innovation, and strong governance to deliver sustainable value. The significant improvement in profitability and balance sheet strength reflects our disciplined strategy, the agility of our teams, and the trust placed in us by our valued customers and stakeholders.”

Chairman Dinesh Weerakkody added: “These results reflect the continued progress of Union Bank’s transformation journey and the disciplined execution of its strategic priorities. Our focus remains on building a more productive, technology-driven, and customer-centric institution that consistently delivers value to shareholders, customers, and the broader economy. We will continue to pursue sustainable growth and strategic partnerships that further strengthen Union Bank’s position in Sri Lanka’s financial sector.”