UnionBank books P3.2-B net earnings in third quarter
UNION BANK of the Philippines (UnionBank) booked a net income of P3.2 billion in the third quarter as its revenues rose, driven by its consumer business.
This was up 77% from its net profit in the previous quarter, it said in a disclosure to the stock exchange.
Its financial statement was unavailable as of press time.
“This quarter’s results keep us on track towards our growth outlook. The bank will continue to build on the progress made in strengthening operational resiliency and reinforcing the balance sheet. Credit costs have stabilized while portfolio quality continues to improve. Combined with strong topline momentum, these developments position UnionBank for a positive growth trajectory in the future,” UnionBank Chief Financial Officer Manuel R. Lozano said.
For the first nine months, the bank’s net income was P6.474 billion.
UnionBank’s net revenues grew by 7.2% year on year to P60.5 billion in the period amid sustained growth in its consumer business.
Net interest income was at P47.53 billion, with interest earnings at P62.88 billion and interest expense at P15.35 billion.
Its net interest margin climbed by 51 basis points to 6.4%.
Meanwhile, its other income was P12.93 billion.
On the other hand, the bank’s operating expenses reached P35.45 billion in the nine months ended September.
“This is aligned with continued investments in customer acquisition, service delivery, client engagement, and improving operational efficiency — key pillars in the expansion of both consumer and institutional banking franchises,” it said.
“Credit costs dropped to P4 billion in the third quarter, down by P2 billion quarter on quarter, pointing to improvement in asset quality.”
Provisions for credit losses stood at P15.592 billion.
UnionBank’s unsecured consumer loans grew by 16% to P138.5 billion at end-September, which it said came amid “targeted digital marketing campaigns and strategic portfolio actions.”
Its consumer portfolio made up 60% of its loan book. Net loans and other receivables were at P521.663 billion in the period.
The bank added that its low-cost current and savings account or CASA deposits rose by 9% year on year, which helped bring down funding costs. Total deposit liabilities were at P708.098 billion as of September.
UnionBank’s assets stood at P1.14 trillion at end-September, while total equity was at P199.58 billion.
“With stronger asset quality, higher coverage, and solid capital ratios, the bank is well positioned to support future business expansion,” it said.
UnionBank’s shares slipped by 15 centavos or 0.52% to close at P28.85 each on Monday. — A.M.C. Sy
