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Union Bank records strong revenue growth in FY2022 despite challenges

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Union Bank continued to be resilient throughout 2022 leveraging on its strong capital position and remained agile, posting an increased overall income leading to an improved core-banking performance during the year. The Bank’s gross income for the year increased significantly by 73% to LKR 18,966 MN as a result of the Bank cautiously managing its businesses with a stringent risk and recovery framework, whilst selectively pursuing for new business opportunities.

Net Interest Income (NII) increased by 36.6% to LKR 5,814 MN as a result of improved yields from the repricing of the loan portfolio and treasury assets. Prudent management of interest expenses lead to an increase in the Net Interest Margin (NIM) by 116 bps. Net Fee and Commission Income increased by 32.8% to LKR 1,143 MN aided by increased activity from the trade business, remittances, credit, and debit cards. Other Operating Income also increased by 121% as a result of the foreign exchange income and gains.

As a result of the stresses stemming from the macroeconomic environment and further challenges to the settlement of loans due to continued pressures faced by impacted borrowers, compelled the Bank to prudently provide for increased impairments which impacted the Bank’s profitability. The impairment charge for the year was LKR 2,556 Mn, an increase of 174% compared to the corresponding period.

Despite prudent cost management initiatives, the Total Operating Expenses of the Bank increased to LKR 588 Mn, an increase of 16% over the corresponding period, impacted by the Rupee depreciation and the increase in utility tariffs.

Consequently, the results from operating activities were LKR 925 Mn and the Bank’s Profit Before all Taxes including its equity accounted share of subsidiaries for the year was LKR 788 Mn and the Bank’s Profit After Tax (PAT) was LKR 314 Mn for the year ended 31 December 2022.

The Total Assets of the Bank increased by 9.4% to LKR 129,483 Mn by 31 December 2022. With the contraction in private sector credit and lending opportunities, the Bank’s Loans and Advances at the end of the year was LKR 67,727 Mn. All business segments focused on expanding lending to existing customers and maintaining credit quality whilst pursuing selective lending opportunities during the year. The Bank secured a funding line from the Asian Development Bank (ADB) which aided further funding to SMEs to sustain and revive businesses. The Bank continued to support impacted customers with customised payment plans whilst extending the relief measures mandated by the Central Bank.

The Bank maintained a robust liquidity position both in LKR and FCY throughout the year. Customer deposits remained stable and increased by 11% to LKR 92,592 Mn aided by prudent deposit mobilization amidst rate revisions. The average CASA of the Bank remained healthy with a CASA ratio of 23% as of 31 December 2022. The Bank’s stage 3 loan ratio stood at 8.19%.

The Bank continued to maintain a robust capital adequacy position, well above the regulatory requirements and the Bank’s Total Capital Ratio was 18.26% as of 31 December 2022. During the year, the rating of the Bank was reaffirmed at BBB-(lka) with a Negative Rating Watch by Fitch due to the stresses in the operating environment.

The Union Bank Group, consisting of Union Bank of Colombo PLC, UB Finance Company Ltd., and National Asset Management Ltd., recorded a PBT amounting to LKR 991 Mn and a PAT of LKR 423 Mn for the year ended 31 December 2022. The Total Assets of the Group was LKR 136,679 Mn an increase of 10% with the Bank’s share amounting to over 95% noting that the group performance is propelled by the Bank.

The Bank acted with empathy in understanding the evolving needs of customers during a challenging year and remained committed to ensuring uninterrupted services with an enhanced focus on digital platforms. During the year, the Bank invested in several key digital transformation and IT infrastructure projects with a focus on improved security and reliability including the upgrade of the Data Centre and the ATM Switch. The Bank also connected to the LankaPay Online Payment Platform for IRD, Customs and Ports Authority payments and added Cargills FoodCity network of outlets for deposits and credit card payments through its Agent Banking service providing enhanced convenience to customers. The Bank also provided an enhanced range of services including onsite cheque printing through its cash management solution Union Bank BizDirect for ease of business operations of the SME and Corporate customers. During the year Union Bank continued to uphold its status in the LMD Most Valuable Brands in Sri Lanka and was also listed in the LMD Most Respected Entities.

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AAC looks towards a future of vertical mobility in Sri Lanka

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Drones could be facilitators of vertical mobility.

The Automobile Association of Ceylon (AAC) is looking beyond the traditional boundaries of mobility and road safety toward the future of mobility through sustainable developments in vertical mobility applications under the global guidance of the Fédération Internationale de l’Automobile (FIA).

AAC President Mr. Dhammika Attygalle believes AAC has the potential to contribute sustainable and proven systems, regulatory understanding, and international mobility frameworks toward developing Sri Lanka’s future mobility landscape while supporting the country’s broader economic development.

Representing Sri Lanka at the recent FIA Regional Drone and Vertical Mobility initiative held in Nepal was AAC Executive Committee Board Member Indula Sumithraarachchi, who participated alongside regional delegates and international mobility experts discussing the applications of vertical mobility systems and evolving regulatory frameworks covering mobility integration, safety, aviation and legal regulations.

“As mobility technologies evolve globally, we see vertical mobility as a natural extension of future mobility ecosystems. We believe vertical mobility is connected to sustainable areas not limited to future urban mobility, transport and logistics, infrastructure integration, safety frameworks, disaster and emergency response, and environmental efficiency,” he stated.

Drones are already being commercially utilized in Sri Lanka for dronegraphy (photography and videography using drones), agriculture, surveying and mapping, events, and marketing. However, it is important that greater attention is given toward safety standards, operational protocols, and aviation regulations, licensing, approvals and career professionalism as drone pilots within Sri Lanka in order to make these technologies safer and more accessible to the public.

International mobility experts increasingly recognize drones as part of a wider vertical mobility ecosystem operating alongside aviation and respective local regulatory frameworks. Experts explain that drone systems are helping countries establish regulatory structures, safety standards, technical expertise, aerial management systems, and operational frameworks that may eventually support broader future mobility technologies.

For AAC, the relationship between drones and vertical mobility represents a wider future mobility framework involving how people, services, safety, infrastructure, information, and transport systems may operate in more connected, intelligent, and efficient ways beyond conventional road-based transportation.

For decades, AAC has played an important role in Sri Lanka’s mobility sector through road safety advocacy, motoring assistance, tourism support services, driver awareness initiatives, and public mobility education. The association has continuously contributed toward improving safe mobility practices for Sri Lankan road users and motorists.

AAC now aims to position Sri Lanka within these evolving international mobility conversations while ensuring that future mobility development remains safe, responsible, and aligned with international standards.

The association also believes collaboration between regulators, aviation authorities, educational institutions, private sector innovators, and international mobility organizations will become increasingly important as future mobility ecosystems continue to develop globally.

Through FIA-supported international engagement and regional collaboration, AAC hopes to contribute toward building awareness and understanding of future mobility opportunities while ensuring Sri Lanka remains connected to emerging global transportation developments.

As mobility increasingly moves toward smarter, interconnected, and technology-driven systems worldwide, AAC’s initiatives into vertical mobility reflect its broader vision of supporting safe, progressive, and future-ready mobility solutions for Sri Lanka and future generations.

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Vietjet Air announces Colombo – Ho Chi Minh City route

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Vietjet announces its Ho Chi Minh City – Colombo direct route, in the presence of General Secretary and President of Vietnam To Lam (center) and Prime Minister of Sri Lanka Harini Amarasuriya (second from right)

Vietjet Air, Vietnamese new-age hybrid airline, has announced its first direct service connecting Colombo to Ho Chi Minh City at the Sri Lanka – Vietnam Trade, Investment and Tourism Cooperation Forum. The announcement took place in the presence of General Secretary and President of Vietnam To Lam, Prime Minister of Sri Lanka Harini Amarasuriya, and senior officials from both countries.

This is the airline’s first direct service between Sri Lanka and Vietnam, supporting the airline’s international expansion while contributing to stronger economic, trade, tourism, and people-to-people ties between the two nations.

The Colombo – Ho Chi Minh City route is expected to commence in August 2026 with four round-trip flights per week. Travelers from Colombo will soon enjoy affordable fares and seamless connectivity to Vietnam’s leading tourism and business hubs, along with convenient access through Vietjet’s extensive international flight network to major destinations across the Asia-Pacific region, including Australia, Japan, South Korea, China, and beyond.

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SDB bank and Hayleys Mobility forge strategic partnership to advance sustainable mobility and private vehicle leasing

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Tharanga De Silva - Chief Manager, Business Banking – SDB bank, Lahiru Ekanayake - Senior Manager - Leasing SDB bank, Chitral De Silva - Chief Business Officer- SDB bank, Manoj Akmeemana - Deputy Chief Executive Officer- SDB bank, Kapila Ariyaratne - Executive Director/Chief Executive Officer- SDB bank, Hasith Prematillake- Managing Director- Hayleys Mobility Limited, Roshani Dharmaratne - Executive Director - Hayleys Mobility Limited, Suraj Chularathne- Assistant General Manager- Hayleys Mobility Limited, Panduka Rathnayake - General Manager Finance - Hayleys Mobility Limited, Anjana Jayarathne - Asst. Manager Channel Development - Hayleys Mobility Limited

SDB bank has entered into a strategic partnership with Hayleys Mobility Limited through the signing of a Memorandum of Understanding, reinforcing the bank’s commitment to expanding access to structured mobility financing while advancing its broader sustainability banking agenda. The collaboration brings together two established institutions to support customers seeking leasing solutions for private vehicles, with a notable emphasis on electric vehicles as part of a more future-focused approach to transportation.

The MoU was signed recently at the Hayleys Mobility office in Union Place, in the presence of senior representatives from both organizations. Representing SDB bank Kapila Ariyaratne, Executive Director and Chief Executive Officer, Manoj Akmeemana, Deputy Chief Executive Officer, Chitral De Silva, Chief Business Officer, Lahiru Ekanayake, Head of Leasing and Tharanga De Silva Chief Manager, Business Banking were participated. Hayleys Mobility Limited was represented by Managing Director Hasith Prematillake, Director Roshani Dharmaratne, Mr. Panduka Rathnayake – General Manager Finance, and Mr. Suraj Chularathne – Assistant General Manager.

The partnership is designed to expand access to private and sustainable leasing solutions across Sri Lanka, while also responding to growing interest in cleaner and more responsible mobility choices. By placing special focus on electric vehicle leasing, the initiative reflects SDB bank’s recognition of changing customer preferences and the importance of supporting more sustainable transport options through accessible financing.

In addition to supporting conventional private vehicle financing, the collaboration enables customers to benefit from a more integrated experience that brings together vehicle selection and financing under a single proposition. Through the combined reach of SDB bank and Hayleys Mobility, the partnership is expected to improve accessibility and convenience for customers across the country, including professionals, self-employed individuals, business owners and other private vehicle buyers looking for reliable, structured leasing solutions.

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