Union Bank of the Philippines (UnionBank) reported third-quarter net income of P3.2 billion as its consumer business led the way in revenue growth.
In the information given to the stock exchange, it said that this is 77% more than the net profit of the previous quarter.
Its financial details were not available at press time.
UnionBank's Chief Financial Officer said, “This quarter's results continue to keep us on track with our growth vision. The Bank will continue to build on the progress made in strengthening operational flexibility and strengthening the balance sheet. Credit costs have stabilized, while portfolio quality continues to improve. Combined with strong topline momentum, these developments position UnionBank for a positive growth trajectory in the future.”FIser Manuel R. Lozano said.
For the first nine months, the bank's net income was P6.474 billion.
UnionBank's net revenue in the period rose 7.2% year-on-year to P60.5 billion amid continued growth in consumer business.
Net interest income was P47.53 billion, interest income was P62.88 billion and interest expense was P15.35 billion.
Its net interest margin increased 51 basis points to 6.4%.
Meanwhile, its other income stood at P12.93 billion.
On the other hand, the bank's operating expenses reached P35.45 billion in the nine months ended September.
“This is in line with continued investment in improving customer acquisition, service delivery, customer engagement and operational managementFReliability – the key pillar in expanding both consumer and institutional banking franchises,” it said.
“Credit costs declined to P4 billion in the third quarter, down from P2 billion quarter-on-quarter, pointing to improving asset quality.”
Provisions for loan losses were P15.592 billion.
UnionBank's unsecured consumer loans rose 16% to P138.5 billion at the end of September, which it said came amid “targeted digital marketing campaigns and strategic portfolio actions.”
Its consumer portfolio made up 60% of its loan book. Net loans and other receivables in the period stood at P521.663 billion.
The bank said its low-cost current and savings account or CASA deposits grew 9% year on year, which helped reduce funding costs. Deposit liabilities totaled P708.098 billion as of September.
UnionBank had assets of P1.14 trillion at the end of September, while total equity stood at P199.58 billion.
“With strong asset quality, high coverage and solid capital ratios, the bank is well positioned to support future business expansion,” it said.
UnionBank shares slipped 15 centavos or 0.52% to close at P28.85 on Monday. , AMC Sy
