MANILA, Philippines—Aboitiz-led Union Bank of the Philippines increased net profit in the first nine months of 2021 by 26 percent year-on-year to P10.7 billion, driven by higher interest earnings and trading gains alongside lower loan loss provisions.
The nine-month net profit delivered by Union Bank was already near the P10.88 billion bottomline expected by market consensus for the full year.
“With our current momentum and the reopening of the economy, we are confident that the worst of the pandemic is behind us,” said Edwin Bautista, UnionBank president and CEO, in a disclosure to the Philippine Stock Exchange on Tuesday (Nov. 2).
“We will be entering 2022 with a solid base from where we can resume our pre-pandemic growth trajectories,” he said.
The nine-month net profit translated to a return on equity of 13.6 percent.
Net interest income increased by 3 percent year-on-year to P22 billion in the first nine months, driven by higher margins and lower funding costs.
Non-interest income rose by 22 percent year-on-year to P12.6 billion due to strong trading gains in the first half of 2021, higher foreign exchange income, and increased fees and commissions.
Loan loss provisioning expense declined by 45 percent year-on-year to P4.1 billion as asset quality stabilized.