UnionBank sees double-digit net income growth
By Melissa Luz T. Lopez, Senior Reporter
UNION BANK of the Philippines (UnionBank) expects another double-digit expansion in its bottom line for this year, supported by a robust increase in its loan book as the lender extends more credit lines to retail clients and small-scale firms, its top official said.
UnionBank President and Chief Operating Officer Edwin R. Bautista said he expects to sustain the strong growth in the bank’s net income from last year, with loans seen growing by at least a fourth.
“In terms of loans, we will be growing between 25-30% again. Our core business will continue to grow in a very significant way,” Mr. Bautista told reporters last week.
“The core income will continue to grow significantly. The year is not yet over so we don’t know what will happen to the trading income.”
The Aboitiz-owned lender booked P10.1 billion in consolidated net income in 2016, a banner year as profits surged by 67.3% from the P6 billion logged a year ago. Loans totaled P235.4 billion, up by 31% from P179.55 billion the previous year. In particular, consumer lending jumped by 21%, accompanied by “significant” increase in other segments.
During the first semester of 2017, UnionBank reported a P4.4-billion net income, up by 11% from the P3.9 billion posted in the same period last year.
Mr. Bautista said the bank is currently focused on lending to retail customers, which comprises more than half of their loan portfolio. By 2018, UnionBank is also looking to extend more loans to micro and small-scale businesses, Mr. Bautista said.
On acquisition plans, the listed lender said they remain “opportunistic” in studying any potential tie-ups or purchases, particularly in terms of contributing to the company’s overall growth.
“If we are looking for an acquisition, it must add value to our network or to our product range or to a new customer segment that we are going after. Also someone who can improve our presence in the lower [segment],” Mr. Bautista said, while clarifying that they are “open to acquire for the right price.”
UnionBank shares closed at P86.90 apiece on Friday, down by 0.11% from P87 each the previous day.
