Union Bank’s Q1 profit up 8.8%

ABOITIZ-led Union Bank of the Philippines grew its net profit in the first quarter by 8.8 percent year-on-year to P1.61 billion, driven by growth in core lending and fee-based businesses.

Based on its regulatory filing, Union Bank expanded its net interest income in the first three months by nearly 40 percent to P3.54 billion compared to the previous year.

The bank grew its loan book by around 27 percent year-on-year to P189.98 billion in the first quarter.

Fee-based businesses also expanded by around 10.7 percent to P973.75 million, compensating for the slack in treasury business.

On the other hand, Union Bank reported a P156.4 million trading loss in the first quarter, reversing the P539.56 million trading gain racked up in the same period last year.

Meanwhile, the bank’s three-month expenditures rose by around 10.7 percent year-on-year to P2.58 billion.

The bank ended the quarter with P421.37 billion in resources, expanding from P368.16 billion year-on-year.

On the funding side, Union Bank expanded its deposit base by close to 20 percent year-on-year to P316.64 billion as of end-March.

Union Bank earlier gobbled up its banking affiliate City Savings bank, which now accounts for a significant portion of its business, particularly in the consumer lending portfolio.