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Union Bank posts strong income growth in 1Q2023

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The first quarter of 2023 witnessed continued positive sentiments in Sri Lanka’s economic activity with the IMF approved Extended Fund Facility (EFF). Significant exchange rate appreciation, moderating inflation, a notable drop in T-bills rates and selective easing of import restrictions resulted in the Banking sector to re-align its business focus.

At a time when the IMF reiterates the importance of stability of the banking system through robust capitalisation, Union Bank continues to remain resolute with a strong capital position well above the regulatory requirements.

During 1Q2023 Union Bank posted an increased total operating income of LKR, 2,064Mn an increase of 25% over the corresponding period ensuing in an improved core-banking performance as a result of the Bank cautiously managing its businesses whilst selectively pursuing new business opportunities.

The resultant increase in revenue was mainly derived from the increase in the Bank’s Net Interest Income (NII) by 49% to LKR 1,622Mn due to improved yields from the repricing of the loan portfolio and treasury assets. The Treasury prudently managed the Government Securities Portfolio whilst taking advantage of the inter-bank market opportunities. Timely repricing of the asset book along with prudent management of interest expenses lead to an increase in the Net Interest Margin (NIM) by 172bps. Net Fee and Commission Income also increased by 26% to LKR 321Mn as a result of the notable increases in the trade business supported by deposits related fees and credit card fees.

In comparison to the same period of the previous year where the Rupee depreciation resulted in notable exchange rate gains, the appreciation of the rupee during the quarter under review adversely impacted the Bank’s Other Operating Income to reduce by 97% to LKR 9.2Mn, resulting adversely towards the Bank’s profitability.

Continued challenges to recovery and collection activities compelled the Bank to prudently provide for increased impairments, which negatively impacted the Bank’s profitability. As a result, the impairment charge for the period was LKR 450Mn, an increase of 56% compared to the corresponding period.

Despite stringent cost management measures, the Total Operating Expenses of the Bank increased by 23% to LKR 1,213Mn over the corresponding period due to the significant increase in inflation. Consequently, the Results from Operating Activities were LKR 401Mn.

The Bank’s Profit Before all Taxes including its equity accounted share of subsidiaries was LKR 422Mn and the Bank’s Profit After Tax (PAT) was LKR 145Mn for the quarter ended 31st March 2023. In comparison to the first quarter of last year, the significant increase in corporate tax, VAT and Social Security Contribution Levey adversely impacted the current period’s bottom line.

The Total Assets of the Bank was LKR 118,800Mn by 31 March 2023. Due to the limited opportunities in the market and the revaluation of the foreign currency loans as a result of the LKR appreciation against USD, the Bank’s Loans and Advances contracted marginally to LKR 62, 978 Mn and the downward revaluation of the foreign currency deposits also resulted in the contraction of the Bank’s liability book. The Bank maintained a healthy liquidity position both in LKR and FCY during the quarter and the Bank’s deposits at the end of the quarter was LKR 90,250Mn supported by prudent deposit mobilisation measures and strategically managed margins. The CASA Ratio improved to 25.5%. The Bank’s Total Capital Ratio was well above the regulatory limits and stood at 18.55% as of 31 March 2023.

The Union Bank Group, consisting of Union Bank of Colombo PLC, UB Finance Company Ltd., and National Asset Management Ltd., recorded a PBT before all taxes amounting to LKR 496Mn and a PAT of LKR 174Mn for the quarter ended 31 March 2023. The Total Assets of the Group was LKR 125,803Mn and the Bank’s share amounted to over 94%.

During the period under review, Union Bank was recognised among the Top 100 public limited liability companies in Sri Lanka for transparency in corporate reporting by Transparency International Sri Lanka (TISL). The Bank was placed 14/100 for the year 2022 and was ranked fully transparent on Organisational Transparency and significantly transparent on Anti-corruption and Domestic Financial Reporting.



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ComBank hands over fully refurbished wards at De Soysa Hospital for Women

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Pictured here are the representatives of the Bank and senior officials of the hospital at the ceremonial handing over of the refurbished ward.

The Commercial Bank of Ceylon recently handed over Wards No. 03 and 04 of the De Soysa Hospital for Women, after the completion of a comprehensive renovation project launched in March this year to mark International Women’s Day.

Wards 03 and 04 handle a substantial share of the hospital’s patient load, and account for approximately 2,500 to 3,000 deliveries and 4,000 to 5,000 admissions annually. Their refurbishment was designed to significantly enhance patient care, safety and comfort, and directly benefit thousands of mothers and newborns.

Five Trustees of the Commercial Bank’s Corporate Social Responsibility Trust participated in the formal handing over of the refurbished wards to the hospital authorities. They were Sharhan Muhseen, the Bank’s Chairman, Raja Senanayake, Deputy Chairman, Sanath Manatunge, Managing Director/CEO, Hasrath Munasinghe, Chief Operating Officer, and Prasanna Indrajith, Chief Financial Officer.

Established in 1879, the De Soysa Hospital for Women is the first maternity hospital in Sri Lanka and the second oldest in Asia and is credited with, among others, performing the country’s first caesarean section in 1905 and establishing one of its earliest organised operating theatres in 1907.

The Commercial Bank’s Corporate Social Responsibility Trust, through which this project was implemented, has via its healthcare-related interventions supported more than 100 government hospitals with essential equipment and infrastructure, contributed to emergency medical services through the ‘Adopt an Ambulance’ initiative, and implemented targeted community health interventions such as water storage solutions for families affected by kidney disease.

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IIHS expands global nursing pathways

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Dr. Renuka Jayatissa and Dr. Kithsiri Edirisinghe speaking to the media

The International Institute of Health Sciences (IIHS) Multiversity is expanding its international education programmes with the aim of creating overseas employment opportunities for Sri Lankan nurses and allied health professionals while contributing to foreign exchange earnings.

Speaking to the media during a conference at IIHS Multiversity in Kerawalapitiya, Dr. Kithsiri Edirisinghe, CEO, Co-Founder and Dean of IIHS aid that the institute has established academic partnerships with overseas universities and higher education institutions, including the University of Surrey in the UK, Deakin University in Australia, Metropolia University of Applied Sciences in Finland, Asia e University in Malaysia and SUNY Canton in the United States.

Under its ‘Study in Sri Lanka, Graduate to the World’ model, students can complete foundational and diploma-level qualifications locally before progressing to international top-up degrees or overseas employment.

Dr Edirisinghe said the model could substantially reduce the cost of obtaining internationally recognised qualifications. It estimates that completing a four-year bachelor’s degree at the University of Surrey in the UK would cost about USD 145,700, including tuition and living expenses, compared with about USD 27,750 through the IIHS pathway in Sri Lanka.

Dr Edirisinghe said the institute’s focus on overseas deployment addressed both Sri Lanka’s economic needs and the growing global demand for healthcare workers.

“Our winning model is producing job-ready, registration-ready healthcare professionals who can seamlessly enter foreign healthcare systems,” he said.

IIHS, which began operations in 2002 as the American College of Health Sciences, established its institutional base in Welisara in 2008 and launched its purpose-built greenfield multiversity campus in 2023.

The institute said it has upgraded the qualifications of more than 5,000 government nurses, supported over 2,500 youth on international employment pathways and trained more than 1,000 allied health professionals. It has also carried out over 250 community health projects.

The institute has identified Germany and Japan among its target markets, with pathways planned for 2,000 nurses for Germany and a one-year preparation programme linked to around 4,000 healthcare positions in Japan.

Dr. Renuka Jayatissa, Vice-Chancellor and a specialist medical doctor, said demographic changes and the growing burden of non-communicable diseases were changing healthcare requirements in Sri Lanka.

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Sampath Bank launches Sri Lanka’s first community-powered book discovery platform at Colombo International Book Fair

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Sampath GPay customers can enjoy 25% cash back on Book Fair purchases

Sampath Bank PLC has launched Sampath Book Finder, Sri Lanka’s first community-powered book discovery platform, giving visitors to the Colombo International Book Fair a faster and more seamless way to find the books they are looking for across the fair’s 150+ stalls, while also opening up new opportunities to discover titles recommended by fellow readers.

Introduced on the opening day of the Colombo International Book Fair on 25 September, Sampath Book Finder brings together digital innovation and the collective knowledge of readers to address a familiar challenge at one of Sri Lanka’s largest literary gatherings, where the scale of the fair can make locating a particular title a time-consuming exercise. When a book proves difficult to locate, visitors can access bookfairtracker.com or scan the designated QR code and submit a request to the community, allowing readers who have already spotted the title to share its location and help others find it without having to search stall after stall.

Commenting on the initiative, Milinda Weerasinghe, Chief Marketing Officer, Sampath Bank PLC, said, “At Sampath Bank, we believe meaningful innovation begins by identifying everyday challenges and creating solutions that make a real difference. Sampath Book Finder brings this thinking to the Colombo International Book Fair by turning the collective knowledge of readers into a real-time digital solution, empowering them to find what they are looking for, discover something new and help others do the same, while making the overall experience more convenient and connected.”

The platform also turns book discovery into a shared experience, allowing visitors to recommend books they encounter by sharing the title, publisher, hall and stall number, which enables fellow readers to discover sought-after titles and recommendations while making it easier to locate them within the fair.

Sampath Bank’s longstanding association with the Colombo International Book Fair also continues in 2026, marking more than 20 years of partnership, with the Bank serving as the Official Banking Partner for this year’s fair. As part of its presence at the event, SampathCards offer 25% cashback for Sampath GPay customers on their purchases and 3 months 0% instalment plans for book purchases via Sampath credit cards, while visitors can also access banking services through the Bank’s physical presence at the fair. Customers registering to open selected Fixed Deposits at the premises will receive an additional 0.25%, adding further value and convenience for visitors.

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