Union Bank of Colombo PLC reported a 26 percent increase in standalone profit after tax to Rs.253.3 million for the second quarter ended June 2026, as higher net interest income and an impairment reversal offset weaker operating income and rising costs.
Profit before tax rose 19 percent to Rs.416.4 million, while net interest income increased 15 percent to Rs.1.50 billion.
However, total operating income fell 3 percent to Rs.1.99 billion, with net fee and commission income declining 6 percent and gains from the bank’s investment portfolio weakening sharply. Interest expenses rose 31 percent, faster than the 25 percent growth in interest income.
Quarterly earnings were supported by a Rs.296.9 million impairment reversal, compared with an impairment charge of Rs.10.2 million a year earlier. Operating expenses rose 11 percent to Rs.1.68 billion, driven by a 29 percent increase in other expenses.
The bank nevertheless recorded a total comprehensive loss of Rs.11.8 million for the quarter, against comprehensive income of Rs.370.9 million a year earlier, due to adverse fair-value movements in its investment portfolio.
For the first half, profit after tax more than doubled to Rs.586.9 million, while profit before tax rose 84 percent to Rs.881.2 million.
