Union Bank of Colombo

What Union Bank of Colombo does

Union Bank of Colombo PLC is a licensed Sri Lankan commercial bank established in 1995 and listed on the Colombo Stock Exchange under ticker UBC.N0000. It operates as a full-service retail, SME, and corporate bank serving individuals, small businesses, and large corporations (including named clients such as Hayleys and Aitken Spence), with a deposit base of LKR 118.8 billion and a loan book of LKR 110.8 billion as of FY2025. Since a 2023 majority acquisition by CG Capital Partners Pte. Ltd. (a subsidiary of Nepal-headquartered CG Corp Global) through Culture Financial Holdings Ltd., the bank has operated under foreign strategic ownership.

The bank's product platform combines traditional banking infrastructure with a digital front end built around the UBgo mobile app, ubdirect online banking portal, video-KYC account opening, biometric authentication, CEFTS real-time transfers, Lanka QR payments, and EMV chip-based Visa and Mastercard card products. Loan offerings span personal loans, home loans, loans against property, leasing, trade finance, and newer specialist products such as Turbo Draft (vehicle-secured working capital) and Gold Loan. Distribution is omnichannel: a national branch and ATM network complemented by agent banking for rural reach and dedicated relationship-manager programs (Biz Partner for SME, Elite Circle for premium retail).

Union Bank generates revenue primarily through Net Interest Income (LKR 5,638 million in FY2025) on its lending and deposit franchise, supplemented by fee and commission income (LKR 1,545 million) from credit cards, trade finance, and transaction banking, plus bancassurance referral commissions. FY2025 total income reached LKR 18.2 billion with after-tax profit of LKR 660 million (double the prior year), and the bank maintains a 13.2% Capital Adequacy Ratio with a Fitch BBB-(Ika) credit rating. The bank's strategic priorities under CG Corp Global ownership are visible in targeted product launches in women entrepreneurship (Power H.E.R, March 2025), youth savings (Junior Elite), digital payments (Mastercard collaboration, October 2025), and an SME ecosystem buildout via the National Entrepreneurship Development Programme with the University of Moratuwa and the National Innovation Agency.

Name

Union Bank of Colombo

Legal name

Union Bank of Colombo PLC

Website

https://unionb.com

Company type

Public

Founded year

1995

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Union Bank of Colombo PLC is a Sri Lankan licensed commercial bank offering retail, SME, and corporate banking products including loans, deposits, credit cards, trade finance, and digital banking through its UBgo mobile app, serving individuals and businesses primarily in Sri Lanka.

Ownership category

akta.pro rank

Product category

Commercial Banking

NAICS

Commercial Banking (522110), Depository Credit Intermediation (5221)

SIC

State Commercial Banks (6022)

akta.pro primary industry

General SME & Middle-Market Commercial Banking (FSABABAA)

akta.pro secondary industries

SME Trade Finance & Working Capital (LCs, Guarantees, Receivables) (FSABABAF), SME Business Lending (Term Loans, Lines of Credit, Overdrafts) (FSABABAB)

Keywords

• Commercial banking services
• Retail banking products
• Corporate trade finance
• SME business banking
• Digital mobile banking

Headquarters

HQ city

Colombo

HQ country

Sri Lanka

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Net Interest Income (NII): Interest income earned from loans and advances minus interest paid on deposits. The bank's core revenue driver, representing the spread between lending rates and deposit rates.
2. Fee and Commission Income: Fees from trade finance, transaction banking, credit cards, and other banking services. Represents diversified, fee-based income streams that contribute to revenue variety.
3. Credit Card Operations: Revenue from credit card transactions, interchange fees, annual fees, and balance transfer charges. Includes rewards program costs and merchant discount rates.
4. Trade Finance Services: Import and export services including Letters of Credit, Shipping Guarantees, Bills Collection, Packing Credit Loans, and Documentary Collection. Revenue from transaction fees and interest on trade facilities.
5. Digital Banking Services: Revenue from digital transaction processing, fund transfers through CEFTS, bill payments, and mobile app-based services.
6. Bancassurance: Insurance products sold through the bank's distribution network. Revenue from insurance commissions on life and general insurance products.

Pricing tiers

Go-to-market motion1 record

Distribution channels7 records

Marketing channels7 records

Core offering

Union Bank of Colombo PLC is a licensed commercial bank in Sri Lanka operating across three business segments: Personal Banking (savings, current, fixed deposit accounts, debit/credit cards, personal/home/educational loans, leasing, remittances, bancassurance), Corporate Banking (trade finance, working capital finance, corporate leasing, long-term finance, foreign exchange, treasury, transaction banking), and SME Banking (Biz Partner, Biz Direct, Power H.E.R, factoring, project financing). The bank distributes these through a branch and ATM network, the UBgo mobile banking app, online banking portal, and agent banking, with Net Interest Income as the primary revenue driver.

Product overview

Union Bank of Colombo PLC operates as a licensed commercial bank in Sri Lanka offering a comprehensive platform-plus-modules banking architecture. The core digital banking platform includes UBgo mobile app and Online Banking, supported by card products (Visa Debit and Credit Cards), loan products (Personal, Home, Loans Against Property, Turbo Draft, Leasing), and SME solutions (Biz Direct, Biz Partner, Power H.E.R). Traditional banking services span savings/current accounts, fixed deposits, trade finance, treasury services, and bancassurance. The bank also provides specialized offerings including Elite Circle premium banking, Salary Power, and Junior Elite children's accounts, all supported by digital payment integrations (Lanka QR, CEFTS, Western Union, Mastercard, Visa).

Differentiator

Problem solved

Functional benefit

Brands

• UBgo: Mobile banking app offering digital banking services including fund transfers, bill payments, and account management
• Union Bank Invest Plus
• Elite Circle
• Power H.E.R
• Turbo Draft
• Biz Direct
• Biz Partner
• UB Finance

Products and services

• UBgo Mobile Banking App Mobile banking app for individual and business customers offering real-time fund transfers via CEFTS, bill payments, account management, GPS branch/ATM locator, loan calculator, train schedules, weather updates, biometric login, and video KYC account opening.
• Online Banking Portal Internet banking web platform for personal and business customers enabling account access, CEFTS-based fund transfers, bill payments, standing orders, and fixed deposit management.
• Credit Cards (Gold, Platinum, Signature) Tiered range of credit cards offering rewards points, cashback, 0% installment plans across travel, insurance, healthcare, jewelry, and autocare categories, plus balance transfer facilities.
• Visa Debit Cards Chip-based debit cards enabling cash withdrawals at ATMs, POS purchases, and online transactions linked to customer savings and current accounts.
• Personal Loans Unsecured personal loans for individual financial needs including debt consolidation, major purchases, and other personal financing requirements.
• Home Loans Mortgage-backed loans for purchasing or constructing homes with competitive interest rates and flexible repayment terms for individual borrowers.
• Educational Loans Loans designed to finance higher education expenses for students and families with structured repayment terms.
• Loan Against Property Secured loans using residential or commercial property as collateral, providing larger loan amounts at lower interest rates than unsecured products.
• Leasing Vehicle and equipment leasing solutions for individuals and businesses with flexible tenure options, including a strategic partnership with David Pieris Automobiles.
• Turbo Draft Quick and convenient working capital financing solution for vehicle owners offering streamlined approval and faster processing.
• Power H.E.R (Women Banking Solution) Women-focused banking solution supporting female entrepreneurs with financial management tools, flexible financing, special interest rates, insurance, subsidies, advisory services, and business networking.
• Union Bank Biz Direct Transaction banking solution giving SME customers control over their business finances with comprehensive management tools for payments and cash management.
• Union Bank Biz Partner SME banking service providing each customer with a dedicated relationship manager for personalized business banking support, advisory, and tailored solutions.
• Factoring Invoice factoring services that help SMEs manage cash flow by selling their accounts receivable to the bank for immediate working capital.
• Trade Finance Comprehensive trade services for corporate clients including import letters of credit, shipping guarantees, export services, packing credit loans, bills collection, and documentary collection.
• Working Capital Finance (Corporate) Working capital finance facilities for corporate clients to manage operational funding cycles, including overdrafts and short-term financing.
• Foreign Exchange Services Foreign exchange services including currency conversions, cross-border payments, and FX risk management for corporate and SME clients.
• Treasury Services Treasury services for corporate clients including money market placements, investments, and cash management solutions.
• Long Term Finance Long-term finance facilities for corporate clients supporting capital expenditure, expansion projects, and large-scale investment needs.
• Corporate Leasing Corporate leasing solutions providing equipment and vehicle financing for business clients with flexible tenure options.
• Savings Accounts Range of personal savings account variants including Regular Savings, Ultra Saver, Money Market Account, Kidz Saver for children, and Salary Power for salaried customers.
• Current Accounts Regular current accounts for individuals and businesses for day-to-day transactional banking needs.
• Fixed Deposits Regular fixed deposit products offering interest income on customer term deposits across varying tenures.
• Union Bank Invest Plus Investment savings plan combining features of savings and fixed deposits with flexible terms and potentially higher returns.
• Lanka QR Payments QR code-based payment solution enabling customers to make and receive real-time payments using the national Lanka QR standard.
• Top-up & Go Digital service allowing instant top-up of Union Bank accounts from other banks for seamless cross-bank fund management.
• Bancassurance Insurance products distributed through the bank's branch and digital channels, including life and general insurance offerings from partner insurers.
• Elite Circle (Premium Banking) Premium banking service with exclusive lounge access at select branches and personalized financial solutions for high-net-worth individual customers.
• Junior Elite Children's and youth savings account designed to encourage early savings habits and financial literacy among young customers.
• Western Union Remittance International money transfer remittance service for receiving overseas funds through the Western Union network at Union Bank branches and digital channels.
• Gold Loan Gold mortgage service where customers can pledge gold jewelry as collateral to obtain secured loans.
• Safe Deposit Lockers Safe deposit locker service available at select branches providing secure storage for customer valuables and important documents.

Quantifiable outcome

• Loan portfolio grew 36% to LKR 110.8 billion in FY2025
• +4 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration7 records

AI capability6 records

Feature8 records

Partnerships

Eight partnerships are on record, tiered minor and core.

• David Pieris AutomobilesminorGTM or Marketing Partner · 1 June 2026Strategic partnership for vehicle leasing solutions, allowing Union Bank customers to access competitive leasing options for vehicles through David Pieris Automobiles dealership network.
• SLECIC (Sri Lanka Export Credit Insurance Corporation)coreStrategic or Co-development Partner · 1 May 2026Partnership to boost migrant worker financing solutions, providing insurance and credit support for remittance-related financial products and services.
• VFS GlobalminorGTM or Marketing Partner · 1 May 2026Partnership to establish Union Bank's Digital Zone at the VFS Global Centre in Colombo, providing visa services customers with banking access and digital onboarding facilities.
• MastercardcoreTechnology or Integration · 1 October 2025Collaboration to enhance digital payment solutions, improving card payment infrastructure and expanding digital payment acceptance across Union Bank's customer base.
• UB Finance PLC (Subsidiary)coreOthers · 1 January 2025Wholly-owned subsidiary of Union Bank providing specialized lending and financial services, part of the Union Bank Group.
• National Asset Management Limited (Subsidiary)minorOthers · 1 January 2025Subsidiary company under Union Bank Group, contributing to the group's asset management and financial services capabilities.
• University of MoratuwacoreStrategic or Co-development Partner · 1 January 2024Partnership with University of Moratuwa for the National Entrepreneurship Development Programme (NEDP), launched in 2024 as part of Union Bank School of Social Entrepreneurship agenda. The program aims to upskill business owners and startup founders with knowledge, innovation, and financial support for SME development.
• National Innovation Agency (NIA)coreStrategic or Co-development Partner · 1 January 2024Government-private sector partnership for the National Entrepreneurship Development Programme (NEDP), working with University of Moratuwa to provide entrepreneurship education, skill development, and advisory services for SME growth.

Scale indicators15 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• DFCC Bank PLC: Sri Lankan development and commercial bank with overlapping SME, corporate, and retail banking services. Comparable niche positioning in project financing and SME lending.
• Sampath Bank PLC: Private Sri Lankan commercial bank with a similar retail, SME, and corporate customer focus and a strong digital banking platform — competes head-to-head with Union Bank across customer segments.
• Nations Trust Bank PLC: Mid-sized private Sri Lankan commercial bank offering retail, SME, and corporate banking with a strong digital and credit card franchise — closely comparable in scale and product mix to Union Bank.
• Pan Asia Banking Corporation PLC: Smaller private Sri Lankan commercial bank competing in similar retail and SME segments. Useful scale and growth-rate comparator for Union Bank's mid-tier positioning.
• Commercial Bank of Ceylon PLC: One of Sri Lanka's largest private commercial banks, offering a directly comparable suite of retail, SME, corporate, trade finance, and digital banking services. Closest scale and business model comparator to Union Bank.
• Hatton National Bank PLC: Major Sri Lankan private commercial bank with comparable retail, SME, and corporate banking offerings plus digital channels. Direct competitor for branch-based and digital deposit and lending share.
• Seylan Bank PLC: Sri Lankan private commercial bank with comparable retail and corporate banking services, credit card offerings, and digital channels — competes directly for similar customer profiles.

Broad incumbents

• Bank of Ceylon: Sri Lanka's largest state-owned commercial bank with an extensive branch and digital network. Broad incumbent that dominates deposits and corporate banking, setting competitive benchmarks Union Bank must meet.
• National Savings Bank (Sri Lanka): State-owned savings and development bank focused on deposit mobilization and government-backed lending. Relevant comparator for Union Bank's retail deposit and personal banking strategy.
• People's Bank: Major state-owned commercial bank in Sri Lanka with nationwide branch presence and dominant SME and rural reach. Defines the competitive landscape for retail and SME deposits and lending.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/unionbanksl

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries2 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Union Bank of Colombo