Union Bank Records Strong Start to 2026 with PBT of LKR 465 Mn

Building on its 2025 performance, during which the Bank doubled its bottom-line Union Bank has commenced 2026 with strong momentum, reinforcing its trajectory as one of the fastest-growing commercial banks in the country. The 1Q 2026 results reflect a sharp acceleration in core earnings, driven by solid gains in profitability and revenue. Profit Before Tax (PBT) rose by 260% to LKR 465 million, while Profit After Tax (PAT) surged by 570% to LKR 334 million, compared to the corresponding period last year. Gross Income increased by 24% to LKR 4.9 billion, supported by Net Interest Income (NII) of LKR 1,649 million, up 29% year-on-year. Net Fee and Commission Income also recorded strong growth of 36% to LKR 387 million, reflecting continued success in diversifying revenue streams across retail, SME, and corporate banking segments. Net other operating income included LKR 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 LKR 31 million. The Bank’s balance sheet continued to expand, with Total Assets growing by 9% to LKR 188.7 billion as at 31 March 2026. Gross Loans and Advances increased by 10% to LKR 129.7 billion, demonstrating the Bank’s continued support for economic activity. Customer Deposits grew by 5% to LKR 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 LKR 1,576 million. As a result, results from operating activities rose by 133% to LKR 643 million, highlighting a marked improvement in operational efficiency. Further strengthening its capital base, the Bank successfully concluded a LKR 3 billion debenture issue to enhance Tier II capital. The Total Capital Ratio stood at a...