Unionbank profit up 104% to reach record P 14B
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 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 bottom line. Moreover, CitySavings delivered their targets for the year given successes in the salary loans and motorcycle business,” said Jose Emmanuel Hilado, Unionbank treasurer and chief financial officer.
“Our digital strategy was key as we scaled up our businesses while maintaining lean operations,” added Unionbank president and chief executive Edwin Bautista.
The bank’s revenues went up by 44 percent, driven by the sustained increase in loans, substantial margin growth
and strong trading gains during the year.
Customer loans increased by 21 percent year-on-year to P393.4 billion, attributed to the business expansion in small and medium enterprises (40 percent year-on-year), credit cards (35 percent year-on-year), consumer loans (31 percent year-on-year) and commercial lending (16 percent year-on-year).
Unionbank’s net interest income last year rose by 10.9 percent year-on-year to P22.19 billion. Other income, which includes trading gains, surged to P14.4 billion from P5.47 billion in the previous year. —DORIS DUMLAO-ABADILLA INQ
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