October 29, 2024 | 12:00am
MANILA, Philippines — Aboitiz-led Union Bank of the Philippines earned 6.2 percent more to P8.6 billion in the first nine months from P8.1 billion in the same period last year on higher revenues and net interest income.
“The bank efficiently allocated its capital to expand its consumer lending activities, which was evident in our record-high net revenues. The leading indicators brought about by our growing retail customers are very promising,” outgoing UnionBank president and CEO Edwin Bautista said in a statement.
The bank’s net revenues rose by 9.2 percent to P57.7 billion in the January to September period from last year’s P52.8 billion amid the expansion of the bank’s consumer portfolio.
Net interest income grew by 14.2 percent to P42.6 billion as net interest margin improved by 58 basis points year-on-year. It marked among the highest in the industry at 5.9 percent.
The bank’s ability to generate fee-income as a proportion to its assets stood at one percent, more than double the banking industry’s average.
Consumer loans also accounted for 60 percent of UnionBank’s total loan portfolio, nearly three times higher than industry average.
“The large proportion of our consumer portfolio is reflected in the continuous improvement of the bank’s net interest margin,” UnionBank chief financial officer Manuel Lozano said.
“With the improving macroeconomic backdrop and expectations of declining interest rates, there is still room for further margin expansion. We should be able to reprice our funding cost downwards, while sustaining the high yields coming from our consumer business,” Lozano said.
The lender’s total loans and receivables reached P523.2 billion, while low-cost current account savings account deposits stood at P419.4 billion as of end-September.
Bautista said UnionBank’s new-to-bank credit card customers per month were averaging 2.5 times higher than last year.
The bank’s active users of its digital channels grew to 5.6 million from 4.7 million a year ago, while digital fund transfer transactions surged by 40 percent year-on-year.
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