Union Bank of the Philippines, the eighth-largest lender in terms of assets, said Monday net income fell 6 percent in the first half to P4.5 billion from a year ago amid the onslaught of the COVID-19 pandemic.
UnionBank said in a statement provisions for loan losses amounted to P7 billion in the six-month period.
“The bank deemed it prudent to add reserves ahead of the potential impact of the COVID-19 crisis on its credit portfolio,” it said.
The first semester net profit translated into a return on equity of 9.2 percent, lower than the 11.1 percent last year.
As of June 30, 2020, total assets stood at P751.5 billion, up 7 percent compared to last year, while total deposits increased by 19 percent on year to P510.4 billion. Revenues increased 55 percent to P22.1 billion, driven by the sustained increase in net interest income and higher trading gains.