Union Bank of the Philippines, the country’s 9th largest lender, reported Monday that the third quarter net income reached P3.5 billion, reflecting a 76 percent increase compared to the same quarter last year and a 14 percent rise from the second quarter.
The third quarter results lifted net income in the January-September period to P8.6 billion.
Union Bank said net revenues in the first nine months increased 9.2 percent to P57.7 billion, driven higher by the expansion of the bank’s consumer portfolio, which has become a key component of its growth strategy. Consumer loans now constitute 60 percent of the total loan portfolio, nearly three times higher than the industry average.
Net interest income rose 14 percent to P42.6 billion, aided by an improved net interest margin that increased by 58 basis points year-on-year. Union Bank’s net interest margin stands at an impressive 5.9 percent, one of the highest in the industry.
The bank also improved its ability to generate fee income relative to its assets. It now stands at 1.0 percent, more than double the average for the Philippine banking sector.
Operating expenses for Union Bank totaled P33.0 billion, with IT-related expenses decreasing by 17 percent compared to the first nine months of 2023. This decline followed the successful integration of the acquired Citi consumer business earlier in the year. The bank has continued to invest in customer acquisition and service delivery, bolstering its growth in the consumer segment.
As of September, Union Bank’s customer base has expanded to over 15 million, including nearly 500,000 new credit card clients this year. This growth reflects the bank’s commitment to enhancing client engagement and service delivery as it continues to scale its operations.
The bank reported that its total assets reached P1.1 trillion, with total loans and receivables netting P523.2 billion and low-cost CASA deposits amounting to P419.4 billion.
