Quantcast
Latest Stories

Union Bank sees net profit growing 10-15% this year

Seeks earnings growth from other sectors

By

Aboitiz-led Union Bank of the Philippines aims to grow its net profit by 10-15 percent this year from the record-high bottom line last year alongside efforts to expand the company’s lending activities.

UnionBank president Victor Valdepeñas said the bank’s consumer group was working to grow that segment by 30 percent to help sustain a 15-percent growth in the loan book every year. The bank has been expanding its consumer businesses through auto, mortgage and credit card lending.

Valdepeñas added that the goal would be to top last year’s record-high profit of P6.6 billion. “We think we can still grow over that by the usual 10-15 percent double-digit growth,” he said.

“What we want to do is to make sure that earnings growth is coming from other businesses like customer franchises, retail banking, corporate and middle market (lending), including transaction banking, cash management and other services,” Valdepeñas said.

One big challenge for the bank this year, the banker said, would be to sustain a momentum of growth that would come from a diversified base.

Despite its relatively small loan book, treasury earnings contribute significantly to Union Bank’s profit every year. Other bankers attributed this to Valdepeñas’ skill in making treasury earnings from proprietary recurring. But moving forward, Valdepeñas said the bank would propel growth from other core sources.

In 2011, Union Bank expanded its net loans and receivables by 10.7 percent to P105.21 billion and has further leeway to expand its lending activities as only 52 centavos out of every peso of deposit liabilities were being lent out.

The low-interest rate environment arising from the cash-awash financial system, Valdepeñas said, would be a big challenge for everybody because this was depressing asset yields.

“Of course we’ve got to take our cue from the central bank in terms of their monetary policy targets,” he said.

Stiffer competition in the banking industry, Valdepeñas said, would only be a natural thing. “It’s just that we want to make sure that our products are superior and innovative so we’ll get a fair share of the market.”

Union Bank is the country’s eighth-biggest in resources based on the latest ranking of the Bangko Sentral ng Pilipinas. It ended 2011 with P270.18 billion in assets.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Bank , Banking , Earnings Forecast , Union Bank



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • US teacher fired over comment on black president
  • Magnitude-7.5 earthquake shakes Mexican capital
  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Filipinos, Dutch re-enact crucifixion of Christ
  • 14 killed in car bombing in Homs
  • Sports

  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Las Vegas ‘Pinoy Pride’ fest hails Filipino heritage
  • Marking Jesus’ journey on Good Friday
  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • WHO warns vs spread of MERS-Cov, urges vigilance in taking precautions
  • Marketplace