UnionBank posts nearly flat H1 profits
Aboitiz-led Union Bank of the Philippines said its first half earnings went up only 2% to P4.8 billion due to lower margins and increased information technology costs.
In the second quarter alone, however, profit jumped 22% to P2.6 billion, buoyed by double-digit growth in net interest income and lower operating expenses.
Net interest income rose 11% to P5.2 billion on higher earning assets and improving margins.
UnionBank ended the first semester with total assets of P704.5 billion, up 13% year on year. Customer loans amounted to P328.3 billion, with credit cards rising 39%, consumer business (31%) and commercial loans (16%) driving the portfolio growth.
“The continuous improvement of our margins contributed to our strong topline results. Operating expenses growth was also kept manageable amid the integration of PR Savings Bank with CitySavings and continued investments in digital transformation. We are optimistic that we can sustain this momentum for the rest of the year, with potential upsides to our margins, as interest rates start to normalize,” said Jose Emmanuel U. Hilado, UnionBank treasurer and CFO.
“We are clearly seeing the fruits of our transformation push. Our improved efficiencies enabled us to on board more retail customers into our platforms. We were able to manage expenses without slowing down on our strategic initiatives,” Hilado said.