Union Bank of Colombo-Business Activity Analysis
Union Bank of Colombo PLC
Analysis of Operating Activities
Operating activities of a company can be mainly measured by its profitability indicators. Therefore in analyzing Union Bank’s operating performances, we have taken few financial balances and ratios and compared their progress during last few years as follows.
Gross Income
Rs. Millions | 2009 | 2010 | 2011 | 2012 | Interest Income | 1855.78 | 1771.98 | 2083.74 | 3444.41 | Other Income | 192.92 | 306.14 | 447.83 | 450.83 | Gross Income | 2052.7 | 2078.12 | 2531.57 | 3895.24 |
A Commercial Bank’s main source of revenue is Interest Income. It mainly includes interest from Loans & Advances, Treasury Bills & Placement with Other Banks, Other Interest Income etc. Other than Interest Income, Bank’s Income comprises of Other Incomes like Fee & Commission Income, Gain from Dealing Securities, Gain from Investing Securities, Net Foreign Exchange Gain, and Dividend Income from Securities etc. Accumulated value of these two Income types is called Gross Income.
Gross Income of the Union Bank of Colombo PLC has being experiencing an increasing progress during the last few years and it has remarkably increased during the financial year of 2011 by 22% and during 2012 by 54%. This 54% increase was mainly lead by the increase in Interest Income in 2012. Other Income has only increased by 0.67% during 2012. But, Interest Income has increased by 65% mainly due to the increase in volume of Loans & Advances given by the Bank and due to the increase in Interest Rates. And also during last few years Bank has increased its business activities by opening new branches all over the country. During 2012, six (6) new branches were opened. This has also helped to increase the total income of the Bank.
Net Interest Income Margin
Rs. Millions | 2008 | 2009 | 2010 | 2011 | 2012 | Interest Income | 1750.00 | 1855.78 | 1771.98 | 2083.74 | 3444.11 | Interest Expense | 1387.00 | 1392.87 | 997.84 |
Analysis of Operating Activities
Operating activities of a company can be mainly measured by its profitability indicators. Therefore in analyzing Union Bank’s operating performances, we have taken few financial balances and ratios and compared their progress during last few years as follows.
Gross Income
Rs. Millions | 2009 | 2010 | 2011 | 2012 | Interest Income | 1855.78 | 1771.98 | 2083.74 | 3444.41 | Other Income | 192.92 | 306.14 | 447.83 | 450.83 | Gross Income | 2052.7 | 2078.12 | 2531.57 | 3895.24 |
A Commercial Bank’s main source of revenue is Interest Income. It mainly includes interest from Loans & Advances, Treasury Bills & Placement with Other Banks, Other Interest Income etc. Other than Interest Income, Bank’s Income comprises of Other Incomes like Fee & Commission Income, Gain from Dealing Securities, Gain from Investing Securities, Net Foreign Exchange Gain, and Dividend Income from Securities etc. Accumulated value of these two Income types is called Gross Income.
Gross Income of the Union Bank of Colombo PLC has being experiencing an increasing progress during the last few years and it has remarkably increased during the financial year of 2011 by 22% and during 2012 by 54%. This 54% increase was mainly lead by the increase in Interest Income in 2012. Other Income has only increased by 0.67% during 2012. But, Interest Income has increased by 65% mainly due to the increase in volume of Loans & Advances given by the Bank and due to the increase in Interest Rates. And also during last few years Bank has increased its business activities by opening new branches all over the country. During 2012, six (6) new branches were opened. This has also helped to increase the total income of the Bank.
Net Interest Income Margin
Rs. Millions | 2008 | 2009 | 2010 | 2011 | 2012 | Interest Income | 1750.00 | 1855.78 | 1771.98 | 2083.74 | 3444.11 | Interest Expense | 1387.00 | 1392.87 | 997.84 |