UnionBank Net Income Up 25% to Php4.3 Billion in 3Q10

UnionBank of the Philippines registered a net income of Php4.3 billion for the first nine months of 2010, up 25.3% than the Bank earned for the same period a year ago.  Net interest income improved by 6.9% to Php5.2 billion, as funding cost declined by 15.2% while earning assets grew by 6.3% year-on-year.  Return on equity and return on assets strengthened to 16.9% and 2.3% from 15.7% and 2.1%, respectively.  Revenue-to-expense ratio is at 2.1x, above its target of 2.0x.

The Bank’s total assets expanded by 5.5% to Php239.1 billion from Php226.6 billion year-on-year.  Deposits grew to Php183.8 billion while loans expanded to Php81.2 billion as auto and mortgage loans continued to exhibit strong growth.  Non-performing loans ratio improved to 2.6% from 3.2% while loan loss coverage increased to 95.0% from 88.2% for the same period in review.  

The Bank continues to expand its branch network with the opening of 10 branches since the start of the year, bringing the total branch network to 182.  Recently opened branches include St. Francis Shangri-La Place, Eastwood City, Aurora Balete Drive, Vertex One San Lazaro and NAIA Terminal 1.  The Bank has 209 onsite and offsite ATMs, a call center and internet bank, www.unionbankph.com.
In September 2010, UnionBank was the 16th certified participant worldwide and the first and only Philippine bank to go live for the SWIFT Workers’ Remittance service, allowing cheaper and faster cross-border bank-to-bank transfers.

The Bank was also one of four local banks included in the top 25 companies in the Philippines recognized by BusinessMirror for achieving a high ranking in the latest Wealth-Added Index (WAI) developed by New-York based Stern Stewart & Co.  The metric measures the wealth created (or destroyed) for shareholders by a company, considering the respective companies’ performance over five years from 2005 to 2009.

The Bank’s stock closed at Php52.80 per share as of end-September of 2010, with a price gain of 76.0% year-on year, outperforming the 46.4% and 50.6% price gains of the stock market and the financial sector indices, respectively.  The Bank’s share price closed at Php61.00 on October 22.