Union Bank posts P4.7B net income in Q1, up 79%

Union Bank of the Philippines saw a high double-digit increase in its bottom line during the first three months of 2021.

In a disclosure to the Philippine Stock Exchange on Friday, Union Bank reported a net income of P4.7 billion in the first quarter of the year, up 79% year-on-year.

“Our strong financial performance in the first quarter puts us on track to achieve our 2021 targets. We’re also starting the year with strong capital ratios, better margins, and improving credit risk,” said Jose Emmanuel Hilado, Union Bank chief finance officer and treasurer.

“Nonetheless, we shall continue to monitor developments from the recent reinstatement of ECQ/MECQ and adjust our business plans accordingly to achieve our financial targets and protect our balance sheet,” Hilado said.

The bank’s revenues stood at P14.3 billion, up 50% from a year earlier.

The higher net revenues provided a cushion for the bank to book additional loan loss provisions of P2.3 billion even as the non-performing loans ratio has declined to 4.7% from 5.1% in December 2020.

As of end-March 2021, Union Bank’s total assets amounted to P747.3 billion.

Total loans and receivables were down by 12% to P344.9 billion driven by weak demand for corporate loans.

Total high-cost deposits were lower by 22% to P222.8 billion as funding requirements were supported by low-cost current account/savings account deposits.

“I am pleased with the bank’s first quarter results despite continued challenges from the pandemic. We continue to see a big shift in the use of digital channels. The bank onboarded more than 470,000 new digital customers in the first quarter of 2021 alone. As of end-March 2021, 2.4 million customers are using our app,” said Edwin Bautista, Union Bank president and CEO.

“Digital transactions are averaging 6 million per month with UnionBank ranking among the top banks in terms of PESONet and InstaPay transactions. This digital shift motivates us to continue enhancing features across our digital platforms. We recently launched InstaPay 2.0 which enables fund transfers by inputting mobile numbers or email addresses. Also, small businesses can now open their business accounts and perform banking transactions digitally with the launch of our SME Business Banking App,” Bautista said.—AOL, GMA News