Union Bank 2017 profit hits P8.4B

Aboitiz-led Union Bank of the Philippines posted a net profit of P8.41 billion last year, down by 16 percent in the absence of extraordinary securities trading gains that buoyed earnings in the previous year.

Excluding one-time gains from securities trading, Union Bank said core income in 2017 was up by 30.4 percent year-on-year to P8.2 billion.

The full-year performance translated to a return-on-equity of 12.4 percent and return-on average-assets of 1.5 percent for Union Bank.

The bank spent 53.9 centavos to earn every pesos booked last year. This cost-to-income ratio of 53.9 percent was cited as one of the most cost-effective among its banking peers.

“We are pleased to continue making major headway on both our business and digital transformation strategies. Financial results were driven by recurring income across all customer business segments,” Union Bank president and CEO Edwin Bautista said in a statement.

The bank grew its loan book last year by 19.4 percent to P281 billion. The bank’s loan portfolio was described as “well-diversified,” with consumer loans accounting for more than a third of total.

Net interest income for the year amounted to P24.59 billion, up by 22.3 percent from year ago. Total deposits rose by 18.9 percent from a year ago to P447.6 billion.

Bautista said the bank was able to attain milestones on the user experience front, such as: the launch of EON Digital Bank, the first with selfie-banking feature in Asia; the UnionBank mobile app and web versions with enhanced transactional capabilities; and the launch of concept branch, The Ark, that introduced the future of branch banking in the country.

The bank’s total assets hit a new high of P622.1 billion last year, marking an 18.6-percent growth.—DORIS DUMLAO-ABADILLA