Union Bank nets P12.7B in 2022

The Union Bank of the Philippines reported a slight increase in its full-year bottom line for 2022, as its revenues recorded a record high on the back of higher net interest and fee-based income during the period.

In a regulatory filing, the Aboitiz-led lender said its net income stood at P12.7 billion in 2022, slightly higher than the P12.6 billion recorded in the previous year. This translated to a return on average equity of 9.7%.

Net revenues for the year climbed 16% to P52.2 billion, with net interest income up 31% to P38.9 billion while fees and other income doubled to P13.4 billion following its acquisition of the Citigroup Inc.’s consumer banking business in the Philippines.

“In 2022, we witnessed a momentous shift in our business model. We have a solid balance sheet that continues to provide us above industry net interest margins,” EVP and Chief Finance Officer Manuel Lozano said.

“The shift in digital also allowed us to grow our fees coming from mobile fund transfers and payments. We were able to book the same bottomline as the previous year, but with less reliance on trading,” he added.

Union Bank’s subsidiaries include City Savings Bank Inc., First Agro-Industrial Rural Bank Inc., Petnet Inc., Union Digital Bank, Bangko Kabayan Inc., UBX Philippines Corp., UBP investments Corp., First Union Direct Corporation, First Union Plans Inc., and First Union Insurance and Financial Agencies inc.

It ended 2021 with 385 branches and 497 automated teller machines across the country.

“Our recent stock performance, increase in stock trading volumes, and the strong commitment from our major shareholders on our Stock Rights Offering reflect shareholders’ trust in the value that will be created from the execution of our strategies,” President and CEO Edwin Bautista said. — RSJ, GMA Integrated News