Union Bank’s Profit Before Tax (PBT) rose by 260% to Rs. 465 million, while Profit After Tax (PAT) surged by 570% to Rs. 334 million, compared to the corresponding period last year. During this time, gross income increased by 24% to Rs. 4.9 billion, supported by Net Interest Income (NII) of Rs. 1,649 million, up 29% year-on-year.
Net Fee and Commission Income also recorded strong growth of 36% to Rs. 387 million, reflecting continued success in diversifying revenue streams across retail, SME, and corporate banking segments. Net other operating income included Rs. 213 million from the sale of shares held in the subsidiary UB Finance PLC.
In line with prudent risk management and ongoing balance sheet expansion, the bank reported a net impairment charge of Rs. 31 million.
The bank’s balance sheet continued to expand, with Total Assets growing by 9% to Rs. 188.7 billion as at 31 March. Gross Loans and Advances increased by 10% to Rs. 129.7 billion, demonstrating the bank’s continued support for economic activity. Customer Deposits grew by 5% to Rs. 124.4 billion, reflecting deepening customer confidence and the effectiveness of the bank’s sales-driven strategy.
Cost discipline remained firm, with operating expenses increasing by only 7% to Rs. 1,576 million. As a result, results from operating activities rose by 133% to Rs. 643 million, highlighting a marked improvement in operational efficiency.
Further strengthening its capital base, the bank successfully concluded a Rs. 3 billion debenture issue to enhance Tier II capital. The Total Capital Ratio stood at a healthy 14.7%, well above regulatory requirements, providing a strong foundation for future growth.
At the Group level, Total Assets increased by 10% to Rs. 202.4 billion. The Union Bank Group comprises UB Finance PLC and National Asset Management Limited.
Chairperson Dinesh Weerakkody stated: “Our 1Q 2026 performance validates the structural transformation initiated last year. Strengthened governance and a sharper focus on core segments are now translating into sustainable, long-term value for our shareholders.”
Director/Chief Executive Officer Dilshan Rodrigo added: “The 570% growth in PAT reflects the strength of our digital-first strategy and customer-centric approach. We remain focused on further strengthening our deposit base as the cornerstone of our stability and growth. This performance provides a solid platform for our ambitions in 2026.”