Union Bank posts Rs. 881 m PBT in 1H

Monday, 3 August 2026 00:05 - - {{hitsCtrl.values.hits}}

Building on its robust start to the year, Union Bank sustained its strong performance momentum into the first half (1H) of 2026, delivering strong growth in profitability, core earnings, and balance sheet strength.

Reflecting a sharp trajectory of operational efficiency and revenue expansion, the Bank’s Profit Before Tax (PBT) increased by 84% year-on-year to Rs. 881 million for 1H 2026. Profit After Tax (PAT) expanded by 134% year-on-year to Rs. 587 million, almost doubling its first-quarter performance and underscoring sustained earnings quality.

Core revenue drivers continued to perform strongly during the six-month period. Gross income rose by 19% to Rs. 10,139 million, underpinned by a 22% increase in Net Interest Income (NII) to Rs. 3,148 million, reflecting the resilience of the Bank’s core lending and treasury operations. Net Fee and Commission Income also posted a steady 13% increase to Rs. 732 million, driven by consistent contributions from the retail, SME, and corporate banking segments.

Overall, income from operating activities grew by an impressive 58% to Rs. 1,250 million, which also included Rs. 249 million arising from the sale of shares held by the Bank in its subsidiary, UB Finance PLC.

To support market penetration and accelerate deposit mobilisation, operating expenses increased by a disciplined 9%.

The Bank’s balance sheet continued its upward expansion, with Total Assets growing by 15% to Rs. 199,283 million. Customer deposits grew by 10% to Rs. 130,219 million, demonstrating deepening customer confidence in response to the Bank’s targeted marketing and promotional initiatives. Gross loans and advances stood at Rs. 136,742 million, up 16% year-on-year, maintaining the strong credit momentum established earlier in the year.

At the Group level—which includes UB Finance PLC and National Asset Management Ltd.,—performance remained equally robust. Group Total Assets grew by 17%, while Group Profit Before Tax rose by 97% to Rs. 997 million. Group Profit After Tax surged by 141% to Rs. 604 million, confirming strong performance across the Group’s non-bank financial and asset management businesses.

Chairman Dinesh Weerakkody said: “Our first-half 2026 performance reflects the strong momentum of Union Bank’s transformation. We remain committed to delivering sustainable growth and creating long-term value for our customers, shareholders, employees, and all stakeholders.”

Director/CEO Dilshan Rodrigo added that the first-half results highlight tangible returns from deliberate investments in new products, marketing, sales initiatives, and digital capabilities, providing a solid foundation for sustaining this momentum through the remainder of 2026.