MANILA, Philippines--The Aboitiz group's Union Bank of the Philippines is interested in bidding for a majority stake in United Coconut Planters Bank if and when the government auctions off the sequestered bank.

At the sidelines of the bank's annual stockholders' meeting on Friday, Unionbank president Victor Valdepeñas told reporters that while organic growth would be the bank's planned path this year, they would keep the doors open for expansion opportunities through acquisition.

"If UCPB will be put on the block, chances are Unionbank will bid. In other words, anything that's up for sale, we shall look into it--whether it adds value to us, whether it strengthens our franchise," Valdepeñas said.

"That was manifested when PNB was put on the block. We bid for it even though it's [a] multiple [of] our size," he added.

In 2005, Unionbank was the lone bidder for a 67-percent joint stake auctioned by the national government and tobacco magnate Lucio Tan. But the tycoon foiled Unionbank's bid by exercising his right to match the offer, thereby gaining dominant control of PNB.

"It will be interesting to see the government banks that will be put on the block," Valdepeñas said.

Asked how Unionbank would pay for another potential acquisition, he said: "Money would become something that's not a problem. When there's a good opportunity, money will be forthcoming."

He said the source of funding was only a secondary issue for Unionbank when thinking of taking over another bank.

"The primary issue is, will it make sense," he said.

As of end-2007, Unionbank had total resources of P188.5 billion. Its return on equity was 12.2 percent and return on assets, 1.6 percent, against the banking industry's respective average of 11.8 percent and 1.4 percent.

The bank sees growth of 5-10 percent in net profit this year despite a tough financial environment eating sharply at treasury earnings, which account for half of its business.

Despite a sharp slowdown in first quarter net profits, Valdepeñas said the bank could still end this year with over P3 billion versus the P2.9 billion chalked up last year.

The last time Unionbank made an acquisition was in 2006 when it bought International Exchange Bank (iBank). The acquisition allowed it to join the ranks of the country's top 10 banks in terms of assets.