UnionBank Q1 profit reaches P2.2 B, 37% growth vs. Year Ago
Sustaining its growth momentum last year, Union Bank of the Philippines posted a net income of P2.21 billion for the first quarter of 2017, up by 37% compared to the P1.6 billion posted in the same period last year. This was also 15% higher compared to the P1.9 B recorded during the fourth quarter of 2016.
The strong earnings translated to an annualized Return on Equity (ROE) and Return on Average Assets (ROA) of 13.1% and 1.7%, respectively, which are among the highest in the industry.
Sustained customer acquisition continued to drive the Bank’s robust growth. Total loans grew by 33% to P253.2 billion year-on-year. Importantly, all retail, commercial and corporate business segments continued to post strong double-digit growth.
Total deposits similarly registered 28% growth to P405.1 billion year-on-year. The expansion in business assets and deposit base translated to a loans to deposits ratio of 62.5%, well within the median of peer-listed banks.
Total operating income was up by 18% to P5.7 billion, of which 88% or P5.1 billion are recurring income in nature. The robust expansion in customer loans and deposits brought recurring income up by 12% to P5.1 billion. Net interest income rose by 11% to P3.9 billion, while fees increased by 18% to P1.1 billion.
“With our first quarter results, we are even more confident that we can sustain the strong growth in our recurring income. We have breached the half-trillion-pesos asset mark, while still remaining among the most cost-efficient banks in the country. We also look forward to offering more solutions to our customers as we recently obtained BSP approval to cross-sell INSULAR LIFE insurance products. This should further boost our retail customer business within this year,” said UnionBank President and COO Edwin Bautista.