UnionBank 2022 net income stays flat amid reopened economy
MANILA, Philippines — Union Bank of the Philippines posted a bottom line that remained flat in 2022 despite reaping benefits from a reopened domestic economy.
In a disclosure sent to the Philippine Stock Exchange on Monday, the Aboitiz-backed bank posted a net income of P12.7 billion in 2022, inching up 0.79% year-on-year.
Revenues surged 16% year-on-year to P52.2 billion. The bank noted net interest income and fee-based income comprised most of its revenues in 2022, which compensated for the lack of trading gains.
Net interest income rose 31% on-year to P38.9 billion, due to higher margins and volume.
Net interest margins benefitted from improved consumer loans uptake and increased low-cost current account savings account deposits.
The domestic economy’s reopening, which began in the second quarter of 2022, helped improve the bank’s loan segment. As it is, interest rates picked up towards the middle of 2022 as a result of the Bangko Sentral ng Pilipinas' rate hike to combat rising inflation. Interest rates currently stood at 5.5%.
As it is, Union Bank reported customer loans surged 42% year-on-year to P479.2 billion in 2022.
Total deposits soared 25% year-on-year to P711.3 billion, as UnionBank reported growths were observed in its retail customer base and corporate accounts’ use of cash management products.
The Aboitiz-led bank likewise reported fees and other income improved to P13.4 billion in 2022, following their acquisition and consolidation of Citigroup’s consumer segment in the country.
“The shift in digital also allowed us to grow our fees coming from mobile fund transfers and payments. We were able to book the same bottomline as the previous year, but with less reliance on trading,” said Manuel R. Lozano, executive vice president and chief finance officer.
Shares at UBP currently trade 4.65% up at P97.85 at the start of weekly trading.
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