UnionBank posts Php1.5 billion in Net income for 3M2014
Union Bank of the Philippines (UnionBank) posted a net income of Php1.5 billion for the first three months of 2014, 61% lower than the Php4.0 billion earned a year ago,largely on account of the exceptionally high trading gainsin the same quarter last year.
Net interest income improved by 25% to Php2.6 billion, on the back of the 43% expansion in average levels of earning assets coupled with the continuous reduction in average funding costs. Service charges, fees and commissions similarly increased by 73% to Php0.9 billion, driven primarily by the strong loan releases of the newly acquired CitySavings Bank.
The first quarter of 2014 was marked by total resources and deposits breachingnew levels,to settle at Php411.4 billion and Php328.9 billion, respectively.
UnionBank focused its balance sheet growth on low-cost CASA deposits build-up and retail lending expansionto backstop the possible lack of trading opportunities this year. Average CASA deposits was up by 29%, anchored on the Bank’s unrelenting commitment to create value to customers by offering innovative cash management products and ensuring high levels of personalized and customized services. On other hand, average loan portfolio sustained double digit growth, led by the 26% expansion in retail lending.
As of end-March, the total branch network of UnionBank and its subsidiary CitySavings stands at 240, supported by more than 272onsite and offsite ATMs with access to over 15,000 ATMs across the country, a call center and internet banking (www.unionbankph.com).