Union Bank income down 61% to P1.5B

MANILA, Philippines - The Aboitiz-led Union Bank of the Philippines (UnionBank) reported a 61-percent decline in net to P1.54 billion in the first quarter of the year from P4 billion in the same period last year.

Net interest income gained nearly 25 percent to P2.56 billion from P2 billion.

Loans expanded by two percent to P2.13 billion this year from P2.09 billion in the first three months of 2013.

Deposits likewise inched up to P988 million, or a nearly two percent from last year’s P969 million.

Overall trading and investment in securities recorded gains of 22.8 percent to P1.1 billion.

Non-interest income, however, plunged 66 percent to P1.8 billion in the first quarter from P5.3 billion in the first quarter of 2013.

Net gains from trading fell by roughly 88 percent contributing significantly to the huge drop in non-interest net earnings.

From P3.37 billion in the first quarter of 2013, net earnings from securities and foreign currency trading plummeted to just P421-million this year.

Likewise, premium revenues fell nearly 86 percent, to P58 million from P393 million.

Transactions classified as “miscellaneous” also reported negative results, declining 57 percent from P1 billion in the first three months of 2013 to just P445 million.

Meanwhile, total resources grew to P411.4 billion, or four percent better than the P396 billion last year.

Capital funds likewise fell to P44.6 billion, slightly lower than the P44.9 billion that year before.

UnionBank is a member of the Aboitiz group of companies. The universal bank is co-owned by the Social Security System (SSS) and the Insular Life Insurance Co.