Union Bank's net income reaches record high in 2016

MANILA, Philippines – With customer loans rising faster than deposits, Aboitiz-led Union Bank of the Philippines saw its net income register an all-time high of P10.1 billion in 2016.

Union Bank told the Philippine Stock Exchange (PSE) on Monday, January 30, that it saw its consolidated net income surge by 67% to P10.1 billion last year, compared to the P6 billion it posted in 2015.

The bank said its total loans jumped by 31% to P235.4 billion, resulting in total assets breaching the half-trillion mark, to close 2016 at P524.4 billion.

Union Bank's total deposits grew by 21% to P376.5 billion, with low-cost CASA increasing by 18%.

The combined growth in customer loans and deposits resulted in recurring revenues increasing by 21% to P19.2 billion.

"We are very pleased with our collective results. All of our major business segments contributed significantly to the bottomline," said Edwin Bautista, president and chief operating officer of Union Bank.

The bank's earnings performance translated to a return-on-equity of 16.9%. 

Union Bank said its interest income expanded by 22% to P14.8 billion, while fees went up by 19% to P4.4 billion in 2016.

Meanwhile, its full-year performance was also enhanced by tax-exempt profits from securities sold in the 2nd half of the year to support its loan growth strategy.

"More importantly, we were able to scale up our recurring revenue base, while making substantial headway in our journey towards digital transformation," Bautista said. – Rappler.com