Union Bank of the Philippines reported a 27 percent drop in net income to P6.1 billion for the first six months of 2022 due to extraordinary trading gains recorded in the same period last year.
In a disclosure to the Philippine Stock Exchange, the bank said its net revenues, excluding trading income, are up by 26 percent year-on-year and 10 percent quarter-on- quarter.
The Bank was able to sustain its net interest margin at 4.7 percent due to growth in higher yielding consumer and commercial loans, coupled with record CASA growth. Recurring fees went up by 92 percent to P2.2 billion driven by digital transactions.
As of end-June 2022, total assets stood at P875 billion, or 19 percent higher than the same period last year. Total loans and receivables are up 13 percent to P381 billion, while total deposits are 12 percent higher at P555 billion.
“It was a strong quarter for the Bank. Our net revenues were driven by recurring net interest income and fees. Credit costs have also stabilized and operating expenses are well within plan,” said UnionBank Treasurer and Global Market Head Jose Emmanuel U. Hilado.
He added that, “For the rest of the year, our focus will be on protecting our margins as we navigate the impact of rising interest rates on our balance sheet.”
“Our first half performance highlights the strength of our core businesses and validates our retail-focused strategy,” said UBP President and CEO Edwin R. Bautista.
He noted that, “We have also accomplished major milestones geared towards achieving our aspirations of becoming the country’s best retail bank. UnionDigital started commercial operations that will allow us to offer financial services to the underserved consumer segment.”
“We also received regulatory approvals to be the legal owner of Citi’s consumer banking business in the Philippines. Starting August 1, we will be able to accrue the value of the acquired Citi consumer banking business to UnionBank,” Bautista added.