Union Bank income up 42% to P4 B in H1

MANILA, Philippines - The Union Bank of the Philippines has reported a net income of P4-billion in the first six months of 2012, up 42 percent from the P2.86 billion recorded in the same period last year.

 In the second quarter, income fell 43 percent from P2.1 billion in the April to June 2011 period to just P1.22 billion in the same period this year.

 But in the first three months of 2012, earnings ballooned to P2.84 billion for a 300-percent increase, from the P708 million in the same period last year.

Net earnings in 2011 were registered at P6.59 billion, 24.3-percent higher than the 2010 income figure of P5.3 billion.

 Based on data furnished the Philippine Stock Exchange (PSE), the Aboitiz-led universal bank recorded a net interest income of P3.4 billion, despite setting aside P260 million for impairment. In the same period last year, it was recorded at P2.9 billion.

Non-interest earnings were recorded at roughly P5.6 billion at the end of June this year, 24 percent better than the P4.48 billion in the first semester of 2011.

As expected, trading gains expanded 50 percent to P3.2 billion this year, from the P2.17 billion in the same period last year.

That offset the slightly weak performance of services charges, fees and commissions that fell 10 percent to P378 million this year, from the P423 million last year.

Premium revenue likewise slipped to P1 billion in the first semester of 2012, down 10 percent from the P1.1 billion in 2011.

Loans grew slightly from P3.3 billion in the first semester of 2011 to just P3.48 billion this year.

Deposits likewise slipped by 17 percent to P1.83 billion this year, from the P2.2 billion in the first semester of 2011.

Total capital funds expanded to P43.3 billion up slightly in the January to June 2012 period from the P42.8 billion in the same period last year.

Total resources thus shrunk by 10 percent, or from P270 billion in the first semester of 2011 to P242 billion in the same period this year.