Page 8 - UBF AR 2018 - E Version
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The Company’s asset and liability positions sector catering to manufacturers, wholesalers
remained well matched whilst maintaining and other services. During the year the Company
sound levels of liquidity. The Company launched experienced a significant growth in the Easy
several innovative new products in both assets Draft product compared to other product
and liabilities to better service the customers’ lines. UBF has been able to manage risk for
requirements. these products through recruiting specialized,
industry experienced staff, who have pioneered
Delivering on its promise to offer “a better deal” Factoring and other working capital solutions
to customers, UBF announced the launch of the in Sri Lanka for several decades.
“Build-it” fixed deposit product in October 2017.
It is a unique value proposition for salaried UBF further expanded its product portfolio into
individuals and average savers who wish to the retail lending space by launching “Gold
accumulate a sizable cash build up for the Loans” at the end of the financial year. This
purchase of an asset or a life event based on product provides liquidity to retail and whole
their monthly income, with maximized returns. sale customers giving them the opportunity to
During the year the Company’s deposit base leverage against their gold articles. Keeping
increased by 19% from LKR 6,063 Mn to LKR with its premise to offer its customers a better
7,237 Mn, highlighting the trust and confidence deal, UBF offers the maximum advances at the
placed by long term depositors in UBF. As a lowest rate in the market backed by a prompt,
member of the dynamic Union Bank Group, UBF superior service quality with the highest
demonstrated strength and stability within the security for gold articles. The Management
financial services arena which has served the expects to greatly expand its reach for the
Company well in terms of retaining and growing Gold Loan products utilizing Group resources.
its deposit base.
The Company complied with the increased core
Gross loans and receivables from customers capital requirement by the regulator with a
grew from LKR 9,028 Mn to LKR 10,011 Mn capital infusion of LKR 300 Mn increasing the
increasing by 11% despite the heightened fiscal total capital including tier II capital to 1,406 Mn.
policy and low economic growth. Notable drops The total assets of the Company also increased
in business volumes were seen in unregistered by 10.5% with the asset base standing at LKR
domestic vehicles and three-wheelers. 11,151 Mn as at 31.03.2018.
However, once again personal referral by
existing customers on the Company service ICRA Lanka Limited re affirmed the issuer rating
standards and long term relationships with of (SL) BB with a stable outlook in recognition
business partners accounted for a significant of the Company’s growth prospects and stable
amount of retained and repeated business as outlook.
well as new introductions. Challenge inspires
innovation and during the year innovative UBF is continuously looking for new
and flexible lending products such as “Easy business channels including vehicle dealers,
Lease” and “84 month Lease” were successfully importers and introducers, insurers and other
introduced into the market. “Mortgage Loans” business partners. The Company’s continued
was another successfully launched customized commitment not only to diversify product lines
product introduced to customers to refinance, but to also diversify market segments has
purchase and improve their property and / or helped UBF weather many market and industry
business. Due to the condition of the operating changes and volatilities. Innovative marketing
environment, as in previous years, the Company techniques as well as exceptional service
has been relatively cautious with regard to non standards maintained year after year have kept
asset back lending which is now proving to be a constant stream of business flowing through
an accurate Management decision. these well established channels.
UBF also continued to leverage on its unique Finance cost saw an upward movement during
position with regard to “Working Capital the second part of the year in line with money
Financing” with new focus on the “Easy Drafts” market movements. During the year the
product, which is an asset backed revolving Company further improved and strengthened
loan facility for working capital purposes. Other our treasury management function. Operational
working capital products include factoring, expenses remained consistent due to efficient
invoice / cheque discounting and short term cost management strategies implemented in
loans. These products primarily service the SME a timely manner. Improvements were made
6 UB Finance
