UnionBank’s 2019 net profit at record high P14B

Unionbank president Edwin Bautista dancingwith Eve, a crowd
favorite at the 2019 Singapore Fintech Summit—PHOTOS BY DORIS DUMLAO-ABADILLA

Aboitiz-led Union Bank of the Philippines ended 2019 with a record-high net profit of P14 billion as strong trading gains complemented a double-digit expansion in net interest earnings.

The full-year net profit marked a 104 percent growth from the previous year’s net profit of P6.87 billion. This translated to an above-industry return on equity of 16.3 percent and return on assets of 2 percent.

“UnionBank ended 2019 on a high note. Our performance was supported by solid fundamentals given a healthy loan portfolio and steady margin recovery. Trading gains also boosted the bank’s bottomline. Moreover, CitySavings delivered their targets for the year given successes in the salary loans and motorcycle business,” Jose Emmanuel Hilado, UnionBank treasurer and chief financial officer, disclosed to the Philippine Stock Exchange on Monday.

“Hitting record income in 2019 is a timely achievement as we celebrate our 38th bank anniversary. I am glad of the strong growth we achieved and the superior returns we delivered amid integration of new subsidiaries and continued investments in digital transformation. Our digital strategy was key as we scaled up our businesses while maintaining lean operations. Most importantly, this accomplishment was a concerted effort across UnionBank and its subsidiaries. We are proud of the hard work put in by all UnionBankers,” added UnionBank president and chief executive officer Edwin Bautista.

Customer loans increased by 21 percent year-on-year (YoY) to P393.4 billion, attributed to the business expansion in small and medium enterprises (+40 percent YoY), credit cards (+35 percent YoY), consumer loans (+31 percent YoY), and commercial lending (+16 percent YoY).

As of end-2019, UnionBank’s total assets grew by 15 percent YoY to P770.9 billion.