COLOMBO – August 31, 2026 – UB Finance PLC, a premier licensed finance company in Sri Lanka, today announced the release of its Integrated Annual Report for the financial year ended March 31, 2026. The comprehensive document, now available on the Colombo Stock Exchange (CSE) website, highlights a period of remarkable financial turnaround, robust asset growth, and strengthened governance, positioning the company for sustainable value creation amidst an improving economic landscape.
The report, titled “UB FINANCE PLC: Annual Report as at 31st March 2026,” provides a detailed overview of the company’s strategic priorities, operational achievements, and commitment to stakeholder value, prepared in line with integrated reporting principles.
Significant Financial Turnaround and Growth
UB Finance PLC demonstrated exceptional resilience and strategic execution, reporting a substantial increase in profitability and asset base for the fiscal year 2025/26. Key financial highlights include:
- Profitability Soars: Profit Before Taxes on Financial Services more than doubled, increasing by an impressive 133.2% to Rs. 423.8 million. Profit After Tax (PAT) saw an even more significant surge of 179.5% to Rs. 111.8 million.
- Robust Asset Expansion: Total Assets expanded by a remarkable 43.5% to Rs. 17.33 billion, surpassing the Rs. 17 billion milestone for the first time in the company’s history. The gross lending portfolio grew by 52.0% to Rs. 15.89 billion, driven by disciplined credit underwriting and portfolio diversification.
- Enhanced Asset Quality: Despite significant lending growth, the Gross Stage 3 Loan Ratio improved markedly from 15.1% to 9.6%, while the Net Stage 3 Loan Ratio declined from 7.3% to 4.8%, reflecting strengthened underwriting and recovery strategies.
- Operational Efficiency: The Cost-to-Income Ratio improved significantly to 65.4% from 74.0%, indicating effective cost management and enhanced productivity.
- Strong Capital Position: Core Capital Ratio (Tier I) and Total Risk Weighted Capital Ratio both stood at 22.0%, well above the minimum regulatory requirements of 8.5% and 12.5% respectively.
- Shareholder Value: Basic Earnings Per Share (EPS) increased by over 170% to Rs. 0.035, and Net Asset Value per Share improved to Rs. 1.01. Market capitalization surged by approximately 286% to Rs. 8.58 billion, reflecting growing investor confidence.
Strategic Vision and Integrated Value Creation
The report underscores UB Finance’s commitment to driving inclusive socioeconomic development, particularly focusing on the unbanked Retail and SME sectors. The company’s “Reimagine UBF 2030” strategic plan outlines a clear path towards achieving an asset base of LKR 50 billion and a profit after tax of LKR 1 billion by 2030.
A significant milestone in the past year was the strategic partnership with Scienter for the implementation of a new Core Banking and ERP platform, a key investment in strengthening technological infrastructure and enhancing operational agility. Furthermore, the company expanded its channel development partnerships, including collaborations with JKCG Auto (BYD), Colonial Motors (Mazda), and Sathosa Motors (Isuzu), to capitalize on the rapidly evolving automotive financing sector, particularly new energy mobility.
UB Finance also continued its investment in human capital, fostering a high-performance culture through structured training and development programs, employee engagement, and leadership development initiatives. Sustainability remains a core tenet of its strategy, with ESG considerations integrated into governance, risk management, and business practices, promoting responsible lending and operational efficiency.
Robust Governance and Stewardship
The Annual Report details UB Finance’s strong corporate governance framework, which is fundamental to its long-term stability and stakeholder trust. The Board of Directors, comprising experienced professionals, oversees various committees including the Board Audit Committee, Board Integrated Risk Management Committee, Board Human Resources and Remuneration Committee, Board Nomination and Governance Committee, Board Related Party Transactions Review Committee, Board Strategic Planning Committee, and Board Information Security and IT Steering Committee.
These committees ensure rigorous oversight of financial reporting, risk management, compliance with Central Bank of Sri Lanka (CBSL) directions, and adherence to Colombo Stock Exchange (CSE) listing rules, reinforcing transparency and accountability across all operations.
Outlook for the Future
Chairman Sabry Ghouse expressed optimism about Sri Lanka’s economic recovery, noting improving fundamentals and returning investor confidence. Director/Chief Executive Officer Ransith Karunaratne affirmed UB Finance’s strong position to capitalize on emerging opportunities, with strategic priorities focused on accelerating quality loan growth, strengthening funding diversity, enhancing digital capabilities, improving operational productivity, and maintaining strong capital and liquidity positions.
The company remains dedicated to responsible corporate citizenship, aiming to contribute meaningfully to Sri Lanka’s economic progress by blending international institutional proficiency with deep localized insights.
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