Union Bank of the Philippines (UnionBank) reported a 26 percent improvement in net income to P10.7 billion for the first nine months of the year on account of a 9 percent increase in revenues.

In a disclosure to the Philippine Stock Exchange, the bank said its net interest income increased 3 percent to P22.0 billion on the back of higher margins at 4.6 percent versus 4.5 percent a year ago.

UnionBank Philippines

“Lower funding costs coming from the robust growth of our CASA deposits supported our margin growth,” the bank said.

Non-interest income rose 22 percent to P12.6 billion due to strong trading gains in the first half of the year, higher foreign exchange income, and increased fees and commissions.

Loan loss provisions booked was lower by 45 percent at P4.1 billion amid the continued stabilization of non-performing loans. NPL ratio was posted at 4.9 percent from 5.1 percent as of year-end 2020.

As of end-September 2021, total assets stood at P767.8 billion while total loans were at Php341.5 billion, 4 percent lower given the subdued demand for corporate loans. Total CASA deposits sustained its record growth of 26 percent to P318.3 billion.

“Digital onboarding initiatives continued to gain traction. We now have 3.6 million registered users across our digital platforms as of end-September 2021, 2.4 times higher than the same period last year,” UnionBank said.

UnionBank President and CEO Edwin Bautista

UBX also ramped up onboarding of customers with about 180,000 MSMEs and channel partners signed up across its platforms, 46 percent higher than the same period in 2020.

The bank said “Our digital bank, UnionDigital, which is one of only 6 licenses granted by the BSP, is on track for launch in 2022.”

“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,” said UnionBank President and CEO Edwin R. Bautista.

Source: Manila Bulletin (https://mb.com.ph/2021/11/02/unionbank-profits-rise-on-higher-revenues/?utm_source=rss&utm_medium=rss&utm_campaign=unionbank-profits-rise-on-higher-revenues)