PRESS RELEASE
UnionBank of the Philippines hit its all-time high income of P14.0 Bn in 2019, more-than-double its earnings in the previous year. This translated to above-industry return on equity of 16.3% and return on assets of 2.0%.
Revenues were up 44% year-on-year (YoY) driven by the sustained double-digit increase in loans, substantial margin growth, and strong trading gains during the year. Customer loans increased by 21% YoY to Php393.4 Bn due to the solid business expansion in SME (+40% YoY), credit cards (+35% YoY), consumer loans (+31% YoY), and commercial lending (+16% YoY). Margins rose by 113bps from its bottom levels in January 2019 driven by asset repricing efforts, placement of funds in cost-efficient instruments, and the impact of cuts in policy rate and reserve requirement ratio during the year.
As of end-December 2019, UnionBank’s total assets grew by 15% YoY to Php770.9 Bn.
UnionBank ended 2019 on a high note. Our performance was supported by solid fundamentals given a healthy loan portfolio and steady margin recovery. Trading gains also boosted the Bank’s bottomline. Moreover, CitySavings delivered their targets for the year given successes in the salary loans and motorcycle business. – Jose Emmanuel U. Hilado, Treasurer and CFO, UnionBank
Hitting record income in 2019 is a timely achievement as we celebrate our 38th Bank anniversary. I am glad of the strong growth we achieved and the superior returns we delivered amid integration of new subsidiaries and continued investments in digital transformation. Our digital strategy was key as we scaled up our businesses while maintaining lean operations. Most importantly, this accomplishment was a concerted effort across UnionBank and its subsidiaries. We are proud of the hard work put in by all UnionBankers. – Edwin R. Bautista, President and CEO, UnionBank
