Union Bank doubles net income to P2.16B

Union Bank of the Philippines posted a net income of P2.16 billion in the first semester of 2007, more than double the P1-billion profit in the same period last year.

The bank’s total assets expanded 87.6 percent to P201 billion in end-June from P107 billion last year following the acquisition of medium-sized International Exchange Bank (iBank).

In a report, the Aboitiz-led commercial bank said its loan portfolio increased 158 percent to P39.3 billion while deposits jumped 167 percent to P145.2 billion.

Capital rose to P26.7 billion due to strong internal capital generation and proceeds from the recently concluded follow-on equity offering. Thus, its capital adequacy ratio (CAR) improved to 23.4 percent in June from 16.2 percent in the same period last year.

Interest differential income grew 86.6 percent; fees and commissions increased almost 100 percent; while trading gains rose 44.4 percent.

“Union Bank has already completed its full system integration. The iBank branches are now fully integrated into the Union Bank system, allowing both Union Bank and iBank clients to transact in 186 branches nationwide free of charge on deposit and withdrawal transactions,” the report said.

Union Bank is still forecasting a modest 30-percent growth in net income for 2007 even after the robust first semester income report.

Union Bank president and chief operating officer Victor B. Valdepenas, in an earlier interview, said the net earnings target of P3.5 billion, or over 30 percent growth in 2007, “was achievable.”

The bank will remain active in the acquisition market with emphasis on banks that have a strong middle market and consumer portfolio.

“Our strategy is not limited to organic growth, we will remain flexible for inorganic expansion if there are opportunities,” Valdepenas added.