Union Bank of the Philippines said Tuesday first-quarter net income jumped 30 percent year-on-year to P3.4 billion, propelled by stronger interest income following the lender’s acquisition of the local credit card business of Citibank.
Net revenue in the first quarter increased 57 percent to P16.1 billion, with net interest income rising 43 percent to P11.5 billion. The consumer business of Citi, whose acquisition Union Bank completed in the second quarter of last year, contributed P3 billion. UnionDigital and CitySavings also bolstered interest income.
Net interest margin was also higher by 54 basis points to 5.21 percent.
Union Bank said earning assets also increased 28 percent to P894.9 billion while fees and other income, excluding trading income, soared to 82 percent to P4.2 billion.
“The investments we made last year have exceeded our expectations. UnionDigital is already profitable after less than a year in operation,” said Edwin Bautista, president and chief executive officer of Union Bank.
“There is strong momentum in the acquired credit card business from Citi. New-to-bank card customers are at a record level. We are geared up to grow our retail banking business. Our infrastructure is ready for scale. We have sufficient capital coming from the recent stock rights offering to further grow our earning asset base,” Bautista added.
