Union Bank nets P8.41B

Aboitiz-led Union Bank of the Philippines chalked up a net profit of P8.41 billion last year, down by 16 percent in the absence of extraordinary securities trading gains that buoyed earnings in the previous year.

But excluding one-time gains from securities trading, Union Bank reported on Friday that its core income for 2017 was up by a robust 30.4 percent year-on-year to P8.2 billion.

The full-year performance translated to a return on equity of 12.4 percent and return on average assets of 1.5 percent for Union Bank.

The bank spent 53.9 centavos to earn every pesos booked last year. This cost-to-income ratio of 53.9 percent was cited as one of the most cost-effective among its banking peers.

“We are pleased to continue making major headway on both our business and digital transformation strategies. Financial results were driven by recurring income across all customer business segments,” Union Bank president and chief executive officer Edwin Bautista said in a press statement.

The bank grew its loan book last year by 19.4 percent year-on-year to P281 billion. The bank’s loan portfolio was described as “well-diversified,” with consumer loans accounting to more than one-third of total.

Net interest income for the year amounted to P24.59 billion, up by 22.3 percent from the previous year.

On the funding side, total deposits rose by 18.9 percent from a year ago to P447.6 billion.

Simultaneously, Bautista said the bank was able to attain milestones on the user experience front, such as: the launch of EON Digital Bank, the first with selfie-banking feature in Asia; the UnionBank mobile app and web versions with enhanced transactional capabilities; and the launch of concept branch, “The Ark”, that introduced the future of branch banking in the country.

“Amid investments in various digital initiatives, the bank continues to sustain very solid profitability results,” he noted.

Union Bank’s total assets reached a new high of P622.1 billion last year, marking an 18.6-percent annual growth.