UnionBank posts lower income in 2017
UNIONBANK of the Philippines (UnionBank) booked a lower net income in 2017 despite positive recurring income across all its business segments.
In a disclosure to the local bourse on Friday, the Aboitiz-led UnionBank said it posted a net income of P8.4 billion in 2017, down by 16.9% from the P10.1 billion in 2016.
This, even as its core income rose to P8.2 billion, up 30.4% from the P6.3 billion UnionBank recorded in the comparable year-ago period.
The bank’s total deposits grew 18.9% to P447.6 billion from the 2016 figure.
“The [b]ank’s loan portfolio is well-diversified, with consumer loans accounting to more than one-third of total loans,” UnionBank said in a statement.
The lender delivered a return on equity and return on average assets of 12.4% and 1.5%, respectively.
Its cost-to-income ratio was registered at 53.9%, with UnionBank noting that it “continues to be one of the most cost-effective banks in the industry.”
UnionBank also registered an 18.6% growth in assets to P622.1 billion at end-2017.
“We are pleased to continue making major headway on both our business and digital transformation strategies. Financial results were driven by recurring income across all customer business segments,” Edwin R. Bautista, Unionbank President and Chief Executive Officer, was quoted as saying in the statement.
He added that that the lender “attained milestones on the user experience front.”
UnionBank launched its EON Digital Bank, which enables its users to log into their accounts by taking selfies, deemed as the first in Asia.
The lender also updated its mobile application and Web site equipped with enhanced transactional capabilities, and unveiled its concept branch The Ark in Makati City.
The Ark, which opened in November, is said to be the first digital bank branch in the country, as “bank ambassadors” equipped with mobile tablets were replaced with common branch elements such as queues and paper forms.
Mr. Bautista added: “Amid investments in various digital initiatives, the [b]ank continues to sustain very solid profitability results.”
Shares in UnionBank rose to P90 apiece on Friday, up by a peso or 1.12% from its previous close. — K.A.N. Vidal
