UNIONBANK recorded a net income of P2.6 billion in the first three months of 2020, up 22 percent for the same period last year. Revenues were up 37 percent to P9.5 billion driven by net interest income, which grew 47 percent to P6.8 billion.
Customer loans went up by 24 percent to P391.8 billion due to the expansion of commercial lending, and SME banking.
Margins rose by 114 basis points to 4.5 percent from 3.4 percent in the previous year, driven by lower funding costs resulting from the expansion of CASA deposits, as well as from BSP’s cuts in policy rate and reserve requirement ratio.
Notwithstanding these solid results, UnionBank allotted higher provisions in the first quarter of the year in anticipation of the potential impact of the COVID-19 pandemic on the bank’s credit portfolio.
Consequently, provision for loan losses was increased by 750 percent to P1.3 billion from P174.6 million in the previous year.
“We deemed it prudent to set aside higher provisions for the year given the uncertainties brought about by this unprecedented health crisis. Our solid financial performance and capital base shall provide us the cushion to withstand the economic impact of the enhanced community quarantine,” said Jose Emmanuel Hilado, UnionBank CFO & treasurer.
“UnionBank is committed to support the economy and its customers by ensuring access to liquidity and other financial needs amid this crisis. Our branches remain open to the public and our digital channels are highly accessible. We encourage everyone to safely Bank from Home and take advantage of the features of our UnionBank Online app such as digital account opening, online check deposits, fund transfers, and remittance to partner outlets, including remittance centers nationwide. I am deeply thankful to all UnionBank frontliners and employees operating the bank from their homes, who ensure that we deliver full banking services to our customers during this unprecedented pandemic,” added UnionBank president and CEO Edwin Bautista.
