UnionBank bares 64% income growth to P1.17B

Union Bank of the Philippines, a partnership between the Social Security System and the Aboitiz Group, reported a 64.25 percent growth in its net income during the first nine months of the year to P1.17 billion from only P712.29 million the previous level.

UnionBank attributed the strong profit performance to robust earnings in its capital market activity, private banking, cash management, consumer banking and other fee-based services.

Based on financial statements filed with the Securities and Exchange Commission, total resources of UnionBank grew 28 percent during the first three quarters of the year to P68.74 billion from the end-December 2001 level of P53.65 billion. The growth was fueled by the increase in deposit liabilities by 40 percent to P39.19 billion.

To further strengthen the quality of its assets, UnionBank set aside a hefty P242.5 million as provision for loan losses, bringing its reserve cover to 79.29 percent, one of highest in the industry.

As of Sept. 30, 2002, the bank’s non-performing loans ratio stood at 12.9 percent as against the industry’s average of 17.58 percent as of end-August.

Boosted by strong profits, UnionBank’s capital funds reached P13.26 billion as of end-September this year. This resulted in a risk-adjusted capital adequacy ratio of 39.01 percent, which was almost four times the requirement of the Bangko Sentral ng Pilipinas of 10 percent and more than twice the industry’s estimated average ratio of 16.7 percent.

Having established its own niché in the electronic banking sector, UnionBank continues to be a vital link for government’s e-initiatives by providing the essential settlement/payment gateway facility.

UnionBank was recently accredited by the Bureau of Internal Revenue to accept tax e-payments from large taxpayers who are mandated to file and pay their taxes electronically using the BIR’s electronic filing and payment system (EFPS).

The EFPS was designed to improve the efficiency and effectiveness of the BIR and the Bureau of Treasury in accounting and monitoring collections and remittances through the banking system. It further aims to increase taxpayer’s convenience and satisfaction in paying tax obligations to the government.

Apart from this, UnionBank also supports the Bureau of Customs with its online payment of customs and duties, SEC with the SEC I-Register and SSS with SSS Net and Philhealth. – Zinnia dela Peña