UnionBank Q2 profit up 91.6%; full-year goal within sight | Inquirer Business
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UnionBank Q2 profit up 91.6%; full-year goal within sight

/ 04:00 AM July 27, 2021

Aboitiz-led Union Bank of the Philippines grew its second quarter net profit by 91.6 percent year-on-year to P3.57 billion on steady interest earnings and lower loan loss provisioning expense as asset quality improved.

This brought the bank’s six-month net profit to P8.3 billion, 94-percent higher than the same period last year. This translated to a return on equity of 15.9 percent.

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“Our strong first half performance and good trajectory gives us confidence that we will hit our full-year targets. Our NPLs (nonperforming loans) are on a declining trend driven by proactive efforts to manage credit risk,” Jose Emmanuel Hilado, UnionBank chief financial officer and treasurer said in a disclosure on Monday.

Net interest margins improved while funding costs declined as low-cost deposits sustained a record year-on-year growth of 28 percent to P299.6 billion.

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Compared to the first quarter when trading gains were larger, net profit declined by about 24.5 percent, Hilado said. Net interest earnings in the second quarter, however, stood 8-percent better than the previous quarter’s level.

For the six-month period, the bank’s net revenues increased by 16 percent year-on-year to P25.5 billion.

However, UnionBank reported a 4-percent year-on-year decline in its loan book to P336.9 billion, citing muted corporate and commercial credit demand.

The bank booked P3.1 billion in loan loss buffer during the period, 56-percent lower than the previous year.

As of end-June, total assets stood at P733.6 billion compared to P751.5 billion a year ago.

—DORIS DUMLAO-ABADILLA INQ
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