UnionBank net profit as of Sept jumps 40% to P8.5B

Aboitiz-led UnionBank of the Philippines posted a 40-percent year-on-year growth in net profit to P8.5 billion in the first nine months, as the bank earned higher revenues from a double-digit growth in earning assets alongside strong trading gains.

The bank’s earnings result translated to a return on equity of 12.6 percent, outperforming most of its peers.

“Net income for the year was boosted by strong trading gains, as well as improvement in our margins. Net interest margin in third quarter 2019 increased by 100 basis points compared to its low during the start of the year. Additionally, consumer and middle-market loans sustained healthy growths,” said Jose Emmanuel Hilado, UnionBank treasurer and chief financial officer.

UnionBank president Edwin Bautista added: “UnionBankers did very well in the first nine months of 2019. Our digital transformation plans are ahead of schedule. We recorded solid growth across the different business segments. CitySavings also stabilized—delivering around P15 billion in salary loan releases and 9,000 motorcycle units during the third quarter. We are fortunate that the substantial improvement in margins and trading gains from favorable market conditions have converged.”

The bank grew its loan book by 10 percent year-on-year to P346.3 billion at end-September, buoyed by the parent bank’s credit card business, which grew by 37 percent, while consumer loans, small and medium enterprise accounts and commercial lending expanded by 31 percent, 42 percent and 13 percent, respectively. —DORIS DUMLAO-ABADILLA