UnionBank recorded a net income of PHP1.61 billion in the first quarter of the year, a substantial increase of 8.95% from the PHP1.48 billion earned in the same period last year. The strong first quarter results was driven by the Bank’s strategic shift towards an accrual business model.
Interest income and the managed cost of funds led to a surge in the Bank’s net interest income by 40.02% to PHP3.54 billion in the three month period, compared to last year’s PHP2.53 billion. The strategy shift was implemented to combat the effects of rising interest rates and volatile global market conditions. This move could not have come at a better time given how the banking and financial services industry as a whole recorded a trading loss. UnionBank was able to mitigate the 26.19% loss in the Bank’s total other income that was attributed to trading losses. Total other income summed up to P1.33 billion.
The shift also reflects the Bank’s focus on its consumer franchise with a particular focus on loans and investments. As such, the Bank’s loans and other receivables net expanded by 5.80% to PHP189.97 billion. This is propelled by expansion in both corporate and consumer-based asset businesses.
Moving forward, the Bank continues to focus on transforming for digital economy, capitalizing on its leadership in innovation, customer delight, and value for money.
“This shows our deep commitment as UnionBankers to our journey to build a bank of enduring greatness. We are well on our way to providing smart banking options through Digital Banking to all our customers. This is only the first step towards the future of banking.”
— Edwin R. Bautista, President and Chief Operating Officer, UnionBank