Union Bank of the Philippines, the financial arm of the Aboitiz Group, said net income rose 30 percent in the first half to P3.9 billion from P3 billion a year ago.
The bank attributed the significant growth to recurring income from net interest as well as fee-based profits.
“This significant increase shows that our income is definitely sustainable. Loans, investment, total deposits and digital channel growth – channels for our core income – were the key drivers,” Union Bank president and chief operating officer Edwin Bautista said in a statement.
“With this, we have been able to demonstrate the scalability of our infrastructure as well as our drive to further improve our products and services that take on a more customer-centric approach,” he said.
Net interest income rose 30 percent to P7.3 billion as a result of the year-on-year expansion in loan portfolio. Fee-based income grew 11 percent to P2 billion which came from an expanded customer base in both loans and deposits.
Meanwhile, other non-interest income fell because of lower trading gains. Expenses grew 6 percent to P5.3 billion as the bank focused on business and branch expansion in the first six months.
Total assets hit P439 billion as of end-June, which came in as relatively flat compared to year-end 2015.
Higher yielding assets in the form of loans and investment securities posted a double-digit growth. Loans and other receivables grew12 percent to P202 billion, on robust growth across all business segments.
Investment securities, which are mostly at amortized cost, increased 10 percent to P121 billion. Deposits grew 8 percent to P336 billion, with demand deposits posting a 10 percent year-to-date increase to P115 billion.
The bank allocated P1 billion for capital expenditure this year. UnionBank currently has 300 branches nationwide.