UnionBank of the Philippines, Inc. expects the growth of its loan portfolio to accelerate further in the third quarter as issues with teachers loans were already resolved.
On the sidelines of Philippine Investment Summit in Taguig City, UnionBank President and Chief Executive Officer Edwin R. Bautista said the Aboitiz-led bank expects its loan growth to quicken this quarter.
“Our loans are still growing by 15-16%. It will accelerate in the third quarter because now we are able to book teachers loans, which was a big portion of our consumer loans,” Mr. Bautista told reporters on Wednesday.
Mr. Bautista explained that the lender was unable to issue loans for teachers for six months due to processing issues with the Department of Education (DepEd).
“Most of us who lend to teachers were hit by the delay in the DepEd processing. So for six months, we were not in effect granting loans,” Mr. Bautista added.
“That’s been addressed now. It’s now flowing, our [net interest margin] will come back.” — Karl Angelo N. Vidal