Union Bank Earns P8.3 Billion In 6 Months

Union Bank posted strong earnings in the first six months of 2021 with a net income of Php8.3 billion, 94% higher than the same period last year.

This translated to a return on equity of 15.9%. Net revenues increased by 16% to Php25.5 billion. Net interest income grew 7% to Php14.8 billion driven by higher net interest margins at 4.7% vs. 4.4% a year ago. Non-interest income rose 33% to Php10.7 billion on the back of strong trading gains, higher foreign exchange income, and higher fees & commissions.

Loan loss provisions were recorded at Php3.1 billion, 56% lower than last year as non-performing loans started to stabilize.

The Bank’s NPL ratio improved to 4.7% vs. 5.1%. as of year-end 2020.

As of end-June 2021, total assets were at Php733.6 billion. Total loans and receivables were down by 4% year-on-year to Php336.9 billion on muted corporate and commercial credit demand.

Total CASA deposits, on other hand, sustained a record growth of 28% to Php299.6 billion. “Our strong first half performance and good trajectory gives us confidence that we will hit our full year targets. Our NPLs are on a declining trend driven by proactive efforts to manage credit risk. Net interest margins continue to improve coming from strong CASA growth as a result of strong digital customer take-up. Other income sources also continue to provide uplift on revenues,” said Jose Emmanuel U. Hilado, CFO and Treasurer.

“We continue to witness the market’s affirmation of our digital strategy. The Bank recorded its highest sign-ups and highest digital accounts opened in a single quarter in 2Q2021, bringing total registered digital users to 2.9 million.

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