UnionBank of the Philippines’s earnings rose in the first half due to higher interest rates.
In a disclosure to the bourse, UnionBank reported its net income for the first six months of 2018 reached P4.7 billion, 8% higher than the P4.4 billion recorded in the same period last year.
Net revenues grew by 9.1% to P12.7 billion from P11.7 billion a year ago.
Its total loans increased by 18% year-on-year to P313 billion, with retail loans accounting for 33% of total loan portfolio. This boosted its total assets to reach P623.2 billion, up by 12.8% year-on-year from P552.6 billion in the same period a year ago. Assets were mainly supported by deposits at Php452.9 billion.
“We are ahead of our target for the year despite margin compression in the first half due to higher interest rates and regulatory compliance. For the remainder of the year, we expect recurring income to drive profitability. We anticipate margins to improve as loan rates start to catch-up against deposit cost,” said Jose Emmanuel U. Hilado, UnionBank Treasurer and CFO.