UnionBank
continues to deliver
strong top-line revenues
at P37.3 billion
in the first half of 2024. This represents an 8.3% increase vs. the
same period last year. The growth in net revenues is driven by the Bank's
expanding consumer business, higher net interest margin, and growing
transaction fees.
Net
interest income grew by 14.8% to P27.5 billion driven by a 55bps improvement in
net interest margin. The Bank’s net interest margin
is among the highest in the banking
industry at 5.7% coming
from the higher proportion of consumer loans to total loans. Consumer
loans now account
for 59% of its total loan portfolio, which is nearly 3x higher than the
industry average.
The
Bank's operating expenses improved by 2.4% year-on-year to P21.6 billion.
Following the successful migration of the acquired Citi consumer business into
UnionBank’s
system in March, the Bank’s IT expenses have declined by close to P1.0 billion quarter-on-quarter. The decline in IT expenses was partly
offset by inherent costs related to customer acquisition and revenue growth.
New-to-bank customers more than doubled
vs. last year’s monthly average. As a result,
the Bank now has over 15 million total customers.
Total
assets as of June 2024 ended at P1.1 trillion. Total loans and receivables – net reached P514.8 billion,
while low-cost CASA deposits at P427.8 billion.
“We continue to post strong topline revenues. Now that we have completed the integration of the acquired Citi consumer business,
the Parent Bank’s expenses have naturally
declined. As a result, our net
income in the second quarter
of the year is at P3.1 billion,
which is up by more than 50% from the P2.0 billion booked in the previous
quarter. Our focus in higher margin
consumer segment and continued expansion of our customer
base will allow us to sustain this growth momentum
in the years to come,” said Manuel R. Lozano, Chief Financial Officer.
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