UNION Bank of the Philippines’ net income for the year 2023 is at P9.2 billion.
Topline revenues posted robust growth driven by a strong consumer business, higher margins, and customer transaction fees.
The bank’s bottom line, however, was affected by integration costs related to the Citi consumer business acquisition. Net revenues increased by 36 percent to P71 billion versus the same period last year.
The bank’s net interest margin went up to 5.5 percent versus 4.8 percent in the prior year.
This resulted in net interest income reaching P52 billion or 34 percent higher year-on-year. The higher margin is attributable to the remarkable growth in consumer lending.
The bank’s consumer loans now account for 58 percent of the total loan portfolio, which is diversified across credit cards, mortgage loans, personal/salary loans and vehicle loans.
Non-interest income was up by 41 percent to P19 billion, with fee-based income higher by 54 percent to P10 billion.
The growth in fees was a result of the growing customer transactions such as bills payments, funds transfers, interchange and other card-related fees.