The year 2023, marked a key milestone for Union Bank with CG Capital Partners Pte. Ltd., indirectly acquiring the majority shareholding through its ownership in Culture Financial Holdings Ltd. CG Capital Partners Pte. Ltd., is an affiliate company of the international powerhouse CG Corp Global (CG).
The improved macroeconomic outlook during FY2023 positioned Union Bank to better navigate the evolving financial landscape. The Bank recorded a steadfast performance during FY2023, with an improved core banking performance with an 18% increase in gross income. The gross income for the year stood at LKR 22,410 Mn.
The Net Interest Income (NII) which was the main contributor increased by 8% to LKR 6,290 Mn. as a result of improved yields from loans and treasury assets. Driven by timely repricing of the asset book and prudent management of interest expenses, the Net Interest Margin was 4.7.% .Net Fee and Commission Income increased by 5% to LKR 1,200 Mn as a result of increased trade activities, credit cards and bancassurance fees. The Bank’s Operating Income before impairments was LKR 8,098 Mn an increase of 4%. The Impairment charge for the period was LKR 1,643 Mn. Despite prudent cost management initiatives, the Bank’s total operating expenses increased by 20% to LKR 5,120 Mn. as a result of significant increases in utility tariffs and general expenses impacted by inflation.
The Bank’s Profit Before Tax (PBT) including its equity accounted share of subsidiaries increased by a noteworthy 119% to LKR 780 Mn. and the Bank’s Profit After Tax (PAT) also increased by 21% to LKR 379 Mn. as at 31 December 2023. Taxes and levies during the year increased significantly due to the Social Security Levy (SSCL), increased VAT on financial services and the Corporate Tax rates.
The Total Assets of the Bank stood at LKR 139,087 Mn as of 31 December 2023 …read more
Source:: Colombo Gazette