Home
Register
Union Bank in talks with investors for funding UB Finance
ECONOMYNEXT- Sri Lanka’s Union Bank of Colombo Plc, said that it is in talks with potential investors for ‘strategic options’ for its subsidiary UB Finance Company Limited (UBF).
“We wish to inform you that the bank has engaged itself in discussions with identified investor/s to explore strategic options for its subsidiary,” Union Bank said in a stock exchange filing.
However, Union Bank has yet to receive a definitive offer from potential investors, and would continue to explore other options for UBF.
“The board of directors of the bank has decided to explore other strategic options for UBF, including, but not limited to divestment, merger, restructuring, spin-out.”
Union Bank owns 73.31 percent of the finance firm’s shares.
For the March 2019 quarter, UBF’s net profits were 20 million rupees, down from 71.8 million rupees as higher bad loan provisioning from the IFRS 9 accounting standard ate into earnings, interim financial statements showed.
The firm’s total loans were 9.97 billion rupees in March, down from 10.01 billion rupees a year earlier, while non-performing loans had grown to 1.8 billion rupees from 1.4 billion rupees.
Newsletter
Daily Brief
Economynext daily and weekly email newsletters covering the best of politics and policy.
Sign up
Just over half of the firm’s loans are in vehicle leases and hire purchases, while a quarter are in asset-backed loans, and 17 percent are factoring and working capital lending.
UBF’s asset base was 11.1 billion rupees in March, down marginally from 11.2 billion rupees a year earlier.
The firm is running with capital below central bank regulations set to manage risks.
As at March 31, UBF’s core capital ratio was 4.09 percent, below the regulatory minimum of 6 percent, and total capital ratio was 6.03 percent, short of the required 10 percent, financial statements showed. (Colombo/Sep03/2019)
ECONOMYNEXT- Sri Lanka’s Union Bank of Colombo Plc, said that it is in talks with potential investors for ‘strategic options’ for its subsidiary UB Finance Company Limited (UBF).
“We wish to inform you that the bank has engaged itself in discussions with identified investor/s to explore strategic options for its subsidiary,” Union Bank said in a stock exchange filing.
However, Union Bank has yet to receive a definitive offer from potential investors, and would continue to explore other options for UBF.
“The board of directors of the bank has decided to explore other strategic options for UBF, including, but not limited to divestment, merger, restructuring, spin-out.”
Union Bank owns 73.31 percent of the finance firm’s shares.
For the March 2019 quarter, UBF’s net profits were 20 million rupees, down from 71.8 million rupees as higher bad loan provisioning from the IFRS 9 accounting standard ate into earnings, interim financial statements showed.
The firm’s total loans were 9.97 billion rupees in March, down from 10.01 billion rupees a year earlier, while non-performing loans had grown to 1.8 billion rupees from 1.4 billion rupees.
Newsletter
Daily Brief
Economynext daily and weekly email newsletters covering the best of politics and policy.
Sign up
Just over half of the firm’s loans are in vehicle leases and hire purchases, while a quarter are in asset-backed loans, and 17 percent are factoring and working capital lending.
UBF’s asset base was 11.1 billion rupees in March, down marginally from 11.2 billion rupees a year earlier.
The firm is running with capital below central bank regulations set to manage risks.
As at March 31, UBF’s core capital ratio was 4.09 percent, below the regulatory minimum of 6 percent, and total capital ratio was 6.03 percent, short of the required 10 percent, financial statements showed. (Colombo/Sep03/2019)
» CCS.N0000 ( Ceylon Cold Stores)
» Sri Lanka plans to allow tourists from August, no mandatory quarantine
» When Will It Be Safe To Invest In The Stock Market Again?
» Dividend Announcements
» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්රතික්ෂේප කළ ගණිතඥයා
» SEYB.N0000 (Seylan Bank PLC)
» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
» The Korean Way !
» In the Meantime Within Our Shores!
» What is Known as Dementia?
» SRI LANKA TELECOM PLC (SLTL.N0000)
» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
» Equinox ( වසන්ත විෂුවය ) !
» COMB.N0000 (Commercial Bank of Ceylon PLC)
» REXP.N0000 (Richard Pieris Exports PLC)
» RICH.N0000 (Richard Pieris and Company PLC)
» Do You Have Computer Vision Syndrome?
» LAXAPANA BATTERIES PLC (LITE.N0000)
» What a Bank Run ?
» 104 Technical trading experiments by HUNTER
» GLAS.N0000 (Piramal Glass Ceylon PLC)
» Cboe Volatility Index
» AHPL.N0000
» TJL.N0000 (Tee Jey Lanka PLC.)
» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
» Bitcoin and Cryptocurrency
» CSD.N0000 (Seylan Developments PLC)
» PLC.N0000 (People's Leasing and Finance PLC)
» Bakery Products ?
» NTB.N0000 (Nations Trust Bank PLC)
» Going South
» When Seagulls Follow the Trawler
» Re-activating
» අපි තමයි හොඳටම කරේ !
» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
» SAMP.N0000 (Sampath Bank PLC)
» APLA.N0000 (ACL Plastics PLC)
» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
» Banks, Finance & Insurance Sector Chart
» VPEL.N0000 (Vallibel Power Erathna PLC)
» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
» WATA - Watawala
» KFP.N0000(Keels Food Products PLC)
» Capital Trust Broker in difficulty?
» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
» What Industry Would You Choose to Focus?
» Should I Stick Around, or Should I Follow Others' Lead?