UnionBank’s Q1 2022 net profit stands at P2.6 billion – Manila Bulletin

UnionBank recorded a net profit of 2.6 billion pesos in the first quarter of 2022. This translated into

a return on equity of 9.2%.

The Bank’s recurring income increased by 21% compared to the same period last year while net interest income

grew by 12% to P8.1 billion and fee-based revenue more than doubled to P1.4 billion. Report

revenue, however, was 45% lower due to extraordinary trading gains recorded in 1Q2021.

The year-over-year (YoY) growth in recurring revenue was attributable to the following: 1) Net

the interest margin improved by 6 basis points to 4.6% thanks to the increase in yields on performing assets,

coupled with a lower cost of funds through the expansion of our CASA deposits; and 2) Fee Based Income

comes from the growth of InstaPay fees and interchange fees. Higher foreign currency earnings

(up 53% YoY to Php369.5m) also boosted our revenue.

Compared to 4Q2021, net income increased by 40%, mainly due to lower provisions for credit losses.

At the end of March 2022, total assets stood at 844.4 billion pesos, 13% higher than the same period last year.

year. Total loans and receivables stood at P351.8 billion, up 2% year-on-year. Total deposits were higher

by 15% to 577.2 billion pesos, mainly thanks to the sustained growth of CASA deposits at 28% at

356.5 billion pesos.

“The optimism generated by the reopening of the economy is palpable and if the pandemic is

behind us, we hope that the economic gains since 2021 will be sustainable. While the course

The Russian-Ukrainian conflict could damage the confidence of investors and consumers, we believe that the

the country’s economic fundamentals are strong enough to meet the challenges ahead. We,

therefore, let us remain optimistic that improving credit appetite and spending habits will allow us to

maintain our recurring revenue momentum for the remainder of 2022,” said Jose Emmanuel U. Hilado,

Treasurer and Head of Corporate Planning Services.

“I am pleased to report that we are on track to achieve the strategic milestones we have set for ourselves.

the year. For the acquisition of Citi’s consumer business, we have already obtained approvals from

the Philippine Competition Commission and the Insurance Commission. Our stock purchase rights offering,

which will fund the acquisition, is already underway and is expected to close in May 2022. We

remain confident of becoming the legal owner of the Consumer Wallet by July 2022. Additionally,

our digital bank UnionDigital is also on track to launch by the 2nd half of the year. We are closely

working with regulators to meet key requirements for the start of our operations,” said

Edwin R. Bautista, President and CEO.