The return on average equity stood at 12.8 percent while return on average assets was at 2.6 percent.
Balanced contributions from all of its businesses triggered a 16.9-percent year-on-year increase in total revenues to P1.2 billion.
Gross interest income was at P984 million, while non-interest income stood at P600 million. The bank’s activities in foreign exchange and capital markets buoyed the non-interest earnings.
Capital funds remained steady at P15.3 billion. The credit risk-adjusted capital adequacy ratio (CAR) improved from 4.2 percent as of year-end 2003 to 46.7 percent as of March 2004, which is more than four times the minimum BSP requirement.
To further strengthen the quality of assets, Union Bank set aside P90 million as provision for loan losses, bringing the total reserves to P3.2 billion. Non-performing loan (NPL) cover increased to 68.3 percent, higher than the industry’s 50 percent.
UnionBank further fortified its position as one of the most cost-efficient service providers in the industry as it posted a revenue-to-expense ratio of 2.26. Central to achieving this feat is the Bank’s initiative of centralizing all back-office processes, which brought about tremendous gains from economies of scale.
In a recent survey conducted by Finance Asia among institutional investoors and equity analysts, Union Bank ranked ninth in both the Top 10 Best Managed Companies and the Top 10 Companies with Best Financial Management in the Philippines.
In the 2003 Philippine Web Awards, unionbankph.com took home the Best Website Award for Bankin and Finance for the third straight year and the People’s Choice Award for Banking and Finance for the fourth straight year.