MANILA, Philippines — The net income of Aboitiz-led Union Bank of the Philippines was steady at P8.48 billion from January to September compared to P8.51 billion in the same period last year despite the surge in provision for bad loans due to the pandemic.
This after the bank allocated P7.46 billion for impairment losses during the nine-month period or 15.4 times the P484 million allocated in the same period last year in anticipation of higher defaults due to the COVID-19 pandemic.
“UnionBank’s year-to-date provision for loan losses amounted to P7.5 billion, which was mainly set aside due to continued weakness in the economy as a result of the COVID crisis,” the bank said in a disclosure to the Philippine Stock Exchange (PSE).
Revenues jumped by 33 percent to P31.8 billion as net interest income surged by 36 percent to P21.4 billion from the continued growth of earning assets and higher margins.
Likewise, Union Bank’s non-interest income went up by 26 percent to P10.4 billion due to higher trading gains.
The bank’s total operating expenses increased by 10.7 percent to P15.39 billion from P13.89 billion.