Browse Categories:

Business | Featured Article | IT

UnionBank profit increases to P10.7 billion in 9 months

UnionBank-profit-increases

The earnings of Aboitiz-led Union Bank of the Philippines jumped by 26 percent to P10.7 billion in the first nine months from P8.5 billion in the same period last year on higher revenues and lower provision for potential loan losses.

UnionBank president and chief executive officer Edwin Bautista said the economy is expected to maintain its recovery from the pandemic-induced recession as the worst of the pandemic is over.

“With our current momentum and the reopening of the economy, we are confident that the worst of the pandemic is behind us. We will be entering 2022 with a solid base from where we can resume our pre-pandemic growth trajectories,” Bautista said.

In a disclosure to the Philippine Stock Exchange (PSE), the Aboitiz-led bank said revenues went up by nine percent to P34.65 billion from January to September compared to P31.8 billion in the same period last year.

This translated to a return on equity of 13.6 percent, higher than a year-ago level of 11.6 percent.

The net interest income of the listed bank inched up by three percent to P22 billion from P21.4 billion on the back of higher margins at 4.6 percent versus 4.5 percent.

Lower funding costs coming from the robust growth of UnionBank’s CASA deposits supported the bank’s margin growth.

On the other hand, the non-interest income of UnionBank jumped by 22 percent to P12.6 billion due to strong trading gains in the first half, higher foreign exchange income, and increased fees and commissions.

The bank’s loan loss provisions fell by 45 percent to P4.1 billion from January to September versus a year-ago level of P7.5 billion amid the continued stabilization of non-performing loans.

UnionBank reported a lower NPL ratio of 4.9 percent compared to the 5.1 percent booked in end-2020.

The bank’s loan book slipped by four percent to P341.5 billion in end-September from P355.8 billion in the same period last year due to subdued demand for corporate loans.

Its current account and savings account deposits surged by a record 26 percent to P318.3 billion during the nine-month period. As a result, total assets inched up by 1.3 percent to P767.8 billion from P758 billion.

Bautista said digital onboarding initiatives continued to gain traction as digital users stood at 3.6 million in end-September, 2.4 times the level recorded in end-September last year.

He said UBX also ramped up onboarding of customers as the number of new users jumped by 46 percent to 180,000 micro, small and medium enterprises and channel partners.

“Our digital bank, UnionDigital, which is one of only six licenses granted by the Bangko Sentral ng Pilipinas, is on track for launch in 2022,” Bautista said.

The Aboitiz-led bank recently received the approval of the BSP to hike its authorized capital to P35.31 billion from P23.11 billion to raise more funds to bankroll future growth businesses.

Source: https://www.philstar.com/business/2021/11/04/2138753/unionbank-profit-jumps-p107-billion-9-months

Chat with Easy Cloud Systems

Typically replies within a few hours

Hi! How can we help you