Union Bank posts Rs. 834 m Profit Before Taxes for 1H 2025

Thursday, 31 July 2025 04:31 - - {{hitsCtrl.values.hits}}

Chairman Dinesh Weerakkody

Director/CEO Dilshan Rodrigo

Union Bank of Colombo PLC has reported a Profit After Tax (PAT) of Rs. 251 million for the first half of 2025 ending 30 June, marking a 247% increase compared to the same period in 2024. This robust profit growth was underpinned by continued expansion of the bank’s balance sheet and strategic operational improvements.

Profit Before Tax (PBT) also rose by 58% to Rs. 834 million, reflecting enhanced performance across core banking operations and increased contributions from subsidiaries.

The bank’s net loans and advances exceeded Rs. 100 billion during the period, representing a 24% year-to-date growth, with focused growth strategies in leasing and pawning portfolios. This expansion directly supported income growth and was complemented by higher loan volumes and trade-related activity, which drove a 25% increase in net fee and commission income.

Union Bank also recorded a net impairment reversal of Rs. 23 million, attributed to improved credit quality and recovery efforts. While operating expenses rose in line with business growth and continued investment in strategic initiatives, total operating income increased by 8%, driven by higher non-interest income and operational efficiency. Customer deposits reached Rs. 108 billion, supported by a higher CASA ratio of 28.3%, indicating improved deposit mix. The bank maintained strong capital adequacy levels, with a Total Capital Adequacy Ratio (CAR) of 13.65% and a Tier I CAR of 12.64%, remaining well above regulatory thresholds.

Total assets of the group grew to Rs. 171 billion, underscoring the bank’s solid financial foundation and growth trajectory.

Key operational highlights during the period included the launch of Union Bank Turbo Draft, offering a fast and convenient working capital solution for vehicle owners, and the opening of a new leasing hub in Kohuwala, further enhancing access to tailored financial solutions for leasing customers. The bank also inaugurated “Trade Connect” at its head office — a dedicated one-stop centre for trade services. These initiatives strengthened the bank’s value proposition for retail and business customers alike.

Union Bank Chairman Dinesh Weerakkody stated that the bank’s latest results underscore its resilience and the effectiveness of the transformational initiatives implemented in recent periods. He noted that the bank remains firmly focused on strengthening and expanding its customer base to drive sustainable growth.

“Our results for the first half of 2025 reflect the positive momentum in our business, supported by sustained balance sheet growth and a disciplined approach to asset and liability management,” said Union Bank Director/CEO Dilshan Rodrigo. “Capital Augmenting is a key imperative to deliver value through digital banking and Business Process Re-engineering to support our focus on customer-centric solutions.”

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