Union Bank of the Philippines, the eighth-largest lender in terms of assets, said Monday net income in the third quarter grew 11 percent to P4.2 billion from a year ago, driven by higher recurring income.
The bank said in a disclosure to the stock exchange net interest income increased by 27 percent in the third quarter to P7.6 billion from P5.9 billion in the same period last year on significant margin improvement, while fee income increased by 18 percent to P621.7 million on account of higher service charges.
Net income in the first nine months, however, declined slightly by 0.9 percent to P8.5 billion, on higher provision for loan losses set aside this year.
The earnings performance translated into a return on equity of 11.6 percent.
“Revenues for the nine-month period grew by 33 percent year-on-year to P31.8 billion as net interest income expanded by 36 percent to P21.4 billion from the continued growth of earning assets and higher margins versus the same period last year; and non-interest income rose 26 percent to P10.4 billion due to higher trading gains,” it said.