UnionBank net income climbs by 31% in 2024

UNION BANK of the Philippines, Inc. (UnionBank) saw its net income rise by 30.69% year on year in 2024 on the back of the strength of its consumer business, improved margins, and higher revenues.

The Aboitiz-led bank’s net income stood at P12.03 billion last year, up from P9.205 billion in 2023, it said in a disclosure to the stock exchange on Monday.

Its financial statement was unavailable as of press time.

“After completing the migration of Citi-branded consumer accounts early last year, we continue to invest heavily to ensure that we elevate customer experiences. We are committed to deliver differentiated product offerings and experiences to our now 17 million customers across all of their preferred customer touchpoints. I am confident that our renewed focus on customer-centered innovation will allow us to deliver greater value this year and in the years to come,” UnionBank President and Chief Executive Officer Ana Maria Aboitiz-Delgado said.

The bank’s net interest income rose by 11.64% to P58.028 billion last year from P51.976 billion in 2023. Its interest earnings increased by 6.59% to P83.74 billion, while interest expense dropped by 3.29% to P25.71 billion.

Net interest margin was at 6%, up by 49 basis points year on year, UnionBank said, noting this is “among the highest in the industry.”

The lender’s other income grew by 14.46% year on year to P21.521 billion from P18.802 billion.

“[The] bank’s fee income as a proportion of its assets is nearly double the Philippine banking industry’s average, fueled by increasing customer transactions such as bills payments and funds transfers, as well as interchange and other card-related fees,” UnionBank said.

This brought its net revenues to P79.5 billion, up by 12.4% year on year.

“Our retail-focused strategy allowed us to book record-high top-line revenues. We should see the continued improvements in our net income moving forward, as we realize the synergies brought about by our integrated consumer operations,” UnionBank Chief Financial Officer Manuel R. Lozano said.

“Consumer loans now account for 61% of the total loan portfolio, nearly three times higher than the industry average. This is diversified across credit cards, mortgage loans, personal/salary loans, and vehicle loans” the bank added.

It said its retail customer base is now at 17 million.

Meanwhile, the bank’s operating expenses inched down by 1.39% to P44.262 billion from P44.888 billion.

It set aside P19.6 billion in provisions for credit losses last year, up from P14.04 billion in 2023. 

Based on its statements of condition, UnionBank’s net loans and receivables inched down by 0.67% to P522.64 billion in 2024 from P526.15 billion a year prior.

Deposit liabilities also declined to P676.32 billion from P712.57 billion.

UnionBank’s assets stood at P1.145 trillion at end-2024.

Its capital funds increased by 11.64% to P196.07 billion from P175.63 billion.

UnionBank’s shares rose by 70 centavos or 2.03% to end at P35.15 each on Monday. — Aaron Michael C. Sy