UnionBank profit rises to P2.9 B, eyes P10-B stock rights

Published April 30, 2018, 12:00 AM

by manilabulletin_admin

By James A. Loyola

UnionBank of the Philippines posted a 32 percent growth in net income to P2.9 billion in the first quarter of 2018 from the P2.2 billion recorded in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said these results were behind robust net revenue growth of 21.5 percent to P6.9 billion.

The strong earnings resulted to an annualized Return on Equity (ROE) and Return on Average Assets (ROA) of 15.9 percent and 2.0 percent, respectively.

The Bank continues to sustain double-digit growth in terms of customer businesses. Total loans grew 15.9 percent to P293.1 billion year-on-year, with consumer loans accounting for 34 percent of total loan portfolio.

Total assets grew 17.3 percent year-on-year to P608.4 billion. Deposits reached P439.6 billion with current and savings accounts comprising more than one-third of total deposits.

Asset growth was also supported by the successful $500-million Medium Term Notes issuance last November, 2017.

“Given our positive earnings performance in the first quarter, we are confident that we can attain our full-year target,” said UnionBank Treasurer Jose Emmanuel U. Hilado.

UnionBank President Edwin R. Bautista said “we expect earnings in the succeeding quarters to once again come from recurring income as we continue to grow our balance sheet.”

“We started the year strong. Our solid profitability results are quite timely as it allows us to fast-track our investments in digital transformation. We made it clear at the start of the year that we will invest in Blockchain technology for our internal operations and the inevitable Internet of Finance,” he added.

Meanwhile, Board of Directors of Union Bank approved to raise additional capital of up to P10 billion through a stock rights offer.

The additional capital will increase the Common Equity Tier 1 and Total Capital Adequacy Ratio of the Bank. The proceeds from the stock rights offer will be used to allow for continued growth of assets of the Bank.