UnionBank recorded a net income of P2.6 billion in the first quarter of 2022. This translated to

a return on equity of 9.2%.

The Bank’s recurring income grew 21% versus the same period last year as net interest income

increased by 12% to P8.1-billion and fee-based income more than doubled to P1.4-billion. Net

income, however, was lower by 45% due to extraordinary trading gains recorded in 1Q2021.

The year-on-year (YoY) growth in recurring income was attributable to the following: 1) Net

interest margin improved by 6bps to 4.6% brought about by higher yields in earning assets,

coupled by lower cost of funds from the expansion of our CASA deposits; and 2) Fee-based income

came from the growth of InstaPay charges and interchange fees. Higher foreign exchange income

(up 53% YoY to Php369.5 million) also boosted our topline revenues.

Versus 4Q2021, net income grew 40% mainly due to lower provisions for credit losses.

As of end-March 2022, total assets were at P844.4-billion, 13% higher than the same period last

year. Total loans and receivables were at P351.8 billion, up 2% YoY. Total deposits were higher

by 15% to P577.2 billion primarily driven by the sustained growth of CASA deposits at 28% to

P356.5 billion.

“The optimism generated by the reopening of the economy is palpable and if the pandemic is

behind us, we are hopeful that the economic gains since 2021 are sustainable. While the ongoing

Russia-Ukraine conflict could adversely affect investor and consumer sentiment, we think that the

country’s economic fundamentals are strong enough to weather the challenges ahead. We,

therefore, remain optimistic that improving credit appetite and spending patterns will allow us to

sustain momentum in our recurring income for the rest of 2022,” said Jose Emmanuel U. Hilado,

Treasurer and Corporate Planning Services Head.

“I am happy to report that we are on track to achieve the strategic milestones that we have set for

the year. For the acquisition of Citi’s consumer business, we have already obtained approvals from

the Philippine Competition Commission and Insurance Commission. Our Stock Rights Offering,

which will fund the acquisition, is already in motion and expected to conclude in May 2022. We

remain confident to become the legal owner of the consumer portfolio by July 2022. Moreover,

our digital bank UnionDigital, is also on-track to launch by the 2nd half of the year. We are closely

working with the regulators to complete key requirements for the start of our operations,” said

Edwin R. Bautista, President and CEO.