Union Bank of the Philippines saw its first quarter net income plunge to P2.6 billion from the previous year’s P4.7 billion which was boosted by extraordinary trading gains.
The Aboitiz-led bank grew its recurring income 21 percent as net interest income went up by 12 percent to P8.1 billion and fee-based income more than doubled to P1.4 billion.
The growth in recurring income was due to higher net interest margins owing to higher yields in earning assets, coupled by lower cost of funds from the expansion of its CASA deposits and fee-based income which came from the growth of InstaPay charges and interchange fees.
A 53 percent jump in foreign exchange income to P369.5 million also boosted UnionBank’s revenues.
UnionBank had total assets of P844.4 billion as of end-March, up 13 from the same period a year ago.
Total loans and receivables rose two percent to P351.8 billion while total deposits grew 15 percent to P577.2 billion.
“The optimism generated by the reopening of the economy is palpable and if the pandemic is behind us, we are hopeful that the economic gains since 2021 are sustainable. While the ongoing Russia-Ukraine conflict could adversely affect investor and consumer sentiment, we think that the country’s economic fundamentals are strong enough to weather the challenges ahead.
We, therefore, remain optimistic that improving credit appetite and spending patterns will allow us to sustain momentum in our recurring income for the rest of 2022,” said Jose Emmanuel U. Hilado, treasurer and Corporate Planning Services head.