UNION BANK of the Philippines’ (UnionBank) net income surged 113% to P6.9 billion in the first half on the back of strong revenue growth and improved asset quality.
Net revenues went up by 9% year on year to P43.1 billion, driven by consumer loans, low-cost deposits, and fee income.
Net interest income went up by 8% to P33.7 billion, resulting in a 40-basis-point improvement in net interest margin to 6.9%.
Non-interest income likewise grew by 12% to P9.4 billion on higher fee income from cards, wealth management, bancassurance, and transactions.
Gross consumer loans grew by 10% as credit cards and personal loans expanded by a collective 18%. Consumer loans now account for 61% of the bank’s total portfolio.
Despite increased loan loss reserves, credit costs declined by 19% to P9.4 billion for the first half, driven by continued improvements in asset quality.
On the funding side, the bank’s current account, savings account (CASA) deposits increased by 7% year on year. — Aaron Michael C. Sy
