UnionBank Net Income up by 122% to Php8.1 billion
Union Bank of the Philippines (PSE: UBP) more than doubled its net income as of third quarter 2016 (Jan to Sep) to Php8.1 billion as compared to the Php3.7 billion posted in the same period last year.
The Bank continues to record strong growth in terms of customer acquisition. Total loans grew by 34.7% to Php221.2 billion year-on-year, coming from double-digit growth across retail, commercial and corporate business segments. Total deposits went up by 25.1% to Php364.0 billion, with low-cost CASA increasing by 17.3%.
The combined growth in customer loans and deposits contributed for recurring revenues to increase by Php2.6 billion to Php14.1 billion. Net interest income grew by Php2.2 billion to Php10.9 billion, while fees grew by another Php0.4 billion to Php3.2 billion. The third quarter result was also enhanced by profits from securities sold to support the Bank’s loan growth strategy.
“Our customer businesses grew faster than anticipated. We are ahead in delivering our financial goals for 2016. We now have a substantial level of core earning assets that will continue to provide us with a recurring revenue stream,” said Jesus Roberto S. Reyes, UnionBank Chief Finance Officer & Treasurer.
As of September 2016, the Bank’s annualized ROAE and ROAA were at 17.3% and 2.4% respectively.