By James A. Loyola
UnionBank of the Philippines posted a 17 percent drop in net income to P8.4 billion last year from the P10.1 billion earned in 2016 which registered stronger trading gains.
In a disclosure to the Philippine Stock Exchange, UnionBank said that, excluding one-time gains from securities trading, core income was up by a robust 30.4 percent to P8.2 billion from P6.3 billion in 2016.
In terms of other profitability indicators, the Bank delivered a Return on Equity and Return on Average Assets of 12.4 percent and 1.5 percent, respectively. UnionBank also continues to be one of the most cost-effective banks in the industry with cost-to-income ratio of 53.9 percent.
Total assets reached a new high of P622.1 billion representing an 18.6 percent annual growth, with total loans expanding by 19.4 percent year-on-year to P281.0 billion. The Bank’s loan portfolio is well-diversified, with consumer loans accounting to more than one-third of total loans. Total deposits similarly registered an 18.9 percent increase from a year ago to P447.6 billion.
“We are pleased to continue making major headway on both our business and digital transformation strategies. Financial results were driven by recurring income across all customer business segments,” said UnionBank President and CEO Edwin R. Bautista.