Demonstrating strategic focus and resilience, Union Bank recorded a 14% year-on-year increase in net loans, underscoring the Bank’s momentum in lending and its commitment to supporting retail, SME, and corporate sectors.
This healthy credit growth highlights the Bank’s strengthened position in the financial services sector.
Reflecting this lending momentum, the Bank’s total assets rose to LKR 161 billion, marking a 10% increase from December 2024.
Deposits grew by 2% to LKR 106 billion, reinforcing the Bank’s funding base.
Asset quality improved, with the stage 3 impairment ratio reducing to 11.0%, from 12.26% at the end of the previous year highlighting the Bank’s strong recovery focus.
Additionally, the Bank continues to maintain a robust capital adequacy ratio of 14.33%.
Net operating income increased by 11% year-on-year to LKR 1.75 billion, supported by improved asset quality and effective risk management.
Net fee and commission income rose by 3% to LKR 284 million driven by the growth in digital banking, card services, and trade-related activities.
Gross income and net interest income were impacted by changing market conditions and interest rate movements, however the Bank's revenue mix remained healthy and strategically diversified.
Union Bank posted a profit before taxes of LKR 285 million at the Bank level, maintaining earnings stability despite income pressures and ongoing investments in digital infrastructure and operational expansion.
At the Group level, Union Bank reported a profit before taxes of LKR 329 million, with Group total assets reaching LKR 171 billion.
Union Bank holds a 95% share of the Union Bank Group, which includes subsidiaries National Asset Management Ltd and UB Finance PLC, contributing to the Group’s consolidated performance and strategic diversification.
The Bank continues to make strides in its digital journey with the implementation of Video KYC (VKYC) improving client convenience.
Further, the Banks commitment to SME and financial inclusivity has been strengthened with the ‘Power HER’ proposition, Sri Lanka’s first women’s banking proposition offering a free, fully integrated cash management solution tailored and the first National Entrepreneurship Programme—a milestone initiative conducted in collaboration with the University of Moratuwa and the National Innovation Agency (NIA).
Photo Caption Left to Right Dinesh Weerakkody, Chairman, Union Bank and Dilshan Rodrigo, Director/CEO, Union Bank