UnionBank nets P3.4B in Q1, up 30%

Aboitiz-led Union Bank of the Philippines saw its net income grow by a double-digit in the first quarter of 2023.

In a disclosure to the Philippine Stock Exchange on Tuesday, UnionBank reported a net income of P3.4 billion in the January to March period, up 30% year-on-year.

This is on the back of revenues which stood at P16.1 billion, up 57% year—on-year.

Net interest income also grew by 43% to P11.5 billion, fueled by the P3-billion contributions from its acquisition of Citi’s consumer business as well as strong loan growth across the bank’s businesses, namely CitySavings and UnionDigital.

Fees and other income grew by 82% year-on-year to P4.2 billion driven by fees from the growing digital and card-related transactions.

Total assets as of March 31 stood at P1.1 trillion, up 30% year-on-year.

Net loans and receivables grew by 39% to P490 billion, while total deposits amounted to P692.9 billion, up 20% from a year earlier.

“The investments we made last year have exceeded our expectations. UnionDigital is already profitable after less than a year in operation. There is strong momentum in the acquired credit cards business from Citi. New-to-bank card customers are at a record level,” said UnionBank president and CEO Edwin Bautista.

“Our infrastructure is ready for scale. We have sufficient capital coming from the recent stock rights offering to further grow our earning asset base,” said Bautista. — Ted Cordero/RSJ, GMA Integrated News