Union Bank records strong start to 2026 with Rs.465mn PBT

Chairman Dinesh Weerakkody

Director and CEO Dilshan Rodrigo

Building on its 2025 performance, during which the bank doubled its bottom-line Union Bank has commenced 2026 with a 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 percent to Rs.465 million, while profit after tax (PAT) surged by 570 percent to Rs.334 million, compared to the corresponding period last year.

Gross income increased by 24 percent to Rs.4.9 billion, supported by a net interest income of Rs.1,649 million, up 29 percent year-on-year. Net fee and commission income also recorded a strong growth of 36 percent 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 the 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 percent to Rs.188.7 billion as at March 31, 2026. Gross loans and advances increased by 10 percent to Rs.129.7 billion. Customer deposits grew by 5 percent to Rs.124.4 billion.

Cost discipline remained firm, with operating expenses increasing by only 7 percent to Rs.1,576 million. As a result, results from operating activities rose by 133 percent to Rs.643 million.

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 percent, well above the regulatory requirements.

At group level, total assets increased by 10 percent to Rs.202.4 billion. The Union Bank group comprises UB Finance PLC and National Asset Management Limited.

Chairman 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 and CEO Dilshan Rodrigo added, “The 570 percent 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.”