UnionBank 1H2024 Net Income at P5.1 billion

UnionBank continues to deliver strong top-line revenues at P37.3 billion in the first half of 2024. This represents an 8.3% increase vs. the same period last year. The growth in net revenues is driven by the Bank’s expanding consumer business, higher net interest margin, and growing transaction fees.

Net interest income grew by 14.8% to P27.5 billion driven by a 55bps improvement in net interest margin. The Bank’s net interest margin is among the highest in the banking industry at 5.7% coming from the higher proportion of consumer loans to total loans. Consumer loans now account for 59% of its total loan portfolio, which is nearly 3x higher than the industry average.

The Bank’s operating expenses improved by 2.4% year-on-year to P21.6 billion. Following the successful migration of the acquired Citi consumer business into UnionBank’s system in March, the Bank’s IT expenses have declined by close to P1.0 billion quarter-on-quarter. The decline in IT expenses was partly offset by inherent costs related to customer acquisition and revenue growth. New-to-bank customers more than doubled vs. last year’s monthly average. As a result, the Bank now has over 15 million total customers.

Total assets as of June 2024 ended at P1.1 trillion. Total loans and receivables – net reached P514.8 billion, while low-cost CASA deposits at P427.8 billion.

“We continue to post strong topline revenues. Now that we have completed the integration of the acquired Citi consumer business, the Parent Bank’s expenses have naturally declined. As a result, our net income in the second quarter of the year is at P3.1 billion, which is up by more than 50% from the P2.0 billion booked in the previous quarter. Our focus on higher margin consumer segment and continued expansion of our customer base will allow us to sustain this growth momentum in the years to come,” said Manuel R. Lozano, Chief Financial Officer. (PR)