ABOITIZ-LED Union Bank of the Philippines (UnionBank) on Monday reported P5.07 billion in net income for the first half, down from P6.4 billion a year earlier, even as revenue grew by 8.3 percent to P37.3 billion
UnionBank highlighted the revenue gain in a disclosure, attributing the growth to an expanding consumer business, higher net interest margin, and growing transaction fees.”
Net interest income was said to have grown by 14.8 percent to P27.5 billion, driven by a 55-basis point improvement in net interest margin.
Consumer loans now account for 59 percent of the total loan portfolio,” UnionBank noted, nearly three times higher than the industry average.
Operating expenses, meanwhile, rose by 2.4 percent year on year to P21.6 billion, even as information technology expenses fell by nearly P1 billion following the migration of the Citi consumer business to UnionBank’s system in March.
New customers more than doubled from last year, the bank said, boosting its customer base to over 15 million.
Total assets were at P1.1 trillion as of end-June, total loans and receivables reached P514.8 billion, and low-cost CASA (current account savings account) deposits hit P427.8 billion.
“We continue to post strong topline revenues,” UnionBank Chief Financial Officer Manuel Lozano said in a statement.
The bank’s focus on the “higher margin consumer segment and continued expansion of our customer base,” he added, “will allow us to sustain this growth momentum in the years to come.”
UnionBank shares dropped 5 centavos, or 0.14 percent, to P36.05 apiece on Monday.
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