MANILA, Philippines—Aboitiz-led Union Bank of the Philippines chalked up P12.6 billion in net profit in 2021, growing by 9 percent year-on-year and tracking market expectations, driven by higher interest earnings and lower loan losses.
This earnings performance translated to above-industry return on equity of 12 percent, the bank disclosed to the Philippine Stock Exchange on Monday (Jan. 31).
Net revenues were at an all-time high of P45.1 billion, up by 7 percent year-on-year.
“Our performance in 2021 gives us a good foundation for further growth in 2022,” said Jose Emmanuel Hilado, senior EVP, in a statement.
“We expect a healthy expansion in our loan portfolio, steady margins from strong CASA (current and savings account or low-cost deposit) growth, improving credit quality, and higher revenues across our business groups this year,” Hilado said.
“Our 2021 performance was a validation of our digital transformation strategy,” said Edwin Bautista, UnionBank president and CEO, also in the statement.
“We hit key strategic milestones that ramped up our growth aspirations,” Bautista said.
He said customer accounts grew by 2.5 million in 2022, with close to a million accounts coming from digital-only account openings.
“CASA growth was at an all-time high for the second consecutive year, owing to our cash management solutions,” Bautista said.
The bank, he said, “hit an inflection point with its e-commerce platforms, with transactions breaching the 1 million-mark in the month of December alone.”
“Our digital bank, UnionDigital is also on track for commercial launch by middle of this year,” said Bautista.
“Together with our digital initiatives, our top priority in 2022 is the smooth transition and migration of Citi’s consumer banking business. We are committed to uphold Citi’s superior customer experience and provide a new home for all Citi employees in UnionBank,” Bautista added.