Union Bank sees double-digit income growth this year

MANILA, Philippines - UnionBank, majority owned by the Aboitiz Group, sees a sustained double-digit growth in its net income this year, a top bank official said.

UnionBank chairman and chief executive officer Justo Ortiz said the projected 10 to 15 percent growth is about the same income growth for the past years.

The continued improvement in earnings performance was evident as UnionBank reported a net income of P4.06 billion in the first six months of 2012, a jump by 29 percent from P2.8 billion in the comparative period in 2011.

In a report to Philippine Stock Exchange (PSE), UnionBank said its net interest income also grew to P3.66 billion in the first half of 2012 from P3.39 billion in 2011.

Ortiz said his optimism that the bank would maintain a positive income growth this year could also be anchored on expected 20 percent growth in consumer banking.

“We hope we could maintain it (income) but it could also be slower this year,” he said, noting that one third of its portfolio comes from consumer credit (auto, mortgage/salary). Another third comes from large corporate account and the remaining one third from medium-sized clients.

To further improve its consumer banking services, UnionBank recently partnered with Western Union and Visa International for the launching of the “Western Union Gold Prepaid Card” in the Philippines.

Starting to be rolled out in Metro Manila, the Gold Prepaid card would target Filipinos who are financially underserved and provide them with a safer alternative to carrying cash allowing them to store and access their money anytime including remittances along with new options for spending locally and globally.

The Philippines is the first country in Asia Pacific where Western Union has launched its prepaid card, extending the company’s stored value products and services to nine countries including US, UK, Germany, Austria, Argentina, Peru, Panama and El Salvador.

“UnionBank is delighted to strengthen our relationship with Western Union, to giving unbanked Filipinos an opportunity to benefit from mainstream financial inclusion. This will help them individually, their families and the communities they belong to. It is in sync with the bank’s tatted purpose of elevating lives and fulfilling dreams,” Ortiz said.

UnionBank started operations in 1981 and became a commercial bank by Jan. 19, 1982. It was granted the license to operate as a universal bank in July 1992 then acquired the International Corporate Bank (Interbank) in 1994.

At present, UnionBank has 190 branches nation- wide, 224 ATMs as of January 2012, a call center and internet bank.