Union Bank of the Philippines, the financial arm of the Aboitiz Group, said net income jumped 122 percent to P8.1 billion in the first nine months of the year from P3.7 billion a year ago.
“Our customer businesses grew faster than anticipated. We are ahead in delivering our financial goals for 2016. We now have a substantial level of core earning assets that will continue to provide us with a recurring revenue stream,” said UnionBank chief finance officer and treasurer Jesus Roberto Reyes.
Data showed UnionBank’s loan portfolio grew 34.7 percent to P221.2 billion year-on-year, coming from double-digit growth across retail, commercial and corporate business segments.
Total deposits went up by 16.8 percent to P364 billion, with low-cost Casa (current account, savings account] increasing by 17.3 percent.
The combined growth in customer loans and deposits led recurring revenues to increase by P2.6 billion to P14.1 billion.
Meanwhile, net interest income grew P2.2 billion to P10.9 billion, while fees rose by P4 million to P3.2 billion.
“The third-quarter result was also enhanced by profits from securities sold to support the bank’s loan growth strategy,” the bank said.
UnionBank said as of September 2016, its annualized return on average equity and return on average assets were at 17.3 percent and 2.4 percent, respectively.
The bank allocated P1 billion for capital expenditure this year. UnionBank currently has 300 branches nationwide.
