MANILA, Philippines - Union Bank of the Philippines plans to open nine more branches before the end of 2011, bringing its total branch network to 196.
The universal bank of the Aboitiz Group of Companies is looking to establish the new branches in high-traffic, high-density and high networth areas, the bank’s top executive said.
“We are focused in areas such as Bonifacio Global City,” said Victor B. Valdepenas, UnionBank president and chief operating officer. “That is where the action is, and that is where the density of opportunity is.”
He also explained that UnionBank wanted to expand in areas that reflect high traffic of the middle market to the high networth individuals. These are the areas presently being developed by prominent developers including SM Development Corp. (SMDC) and Ayala Land Inc.
“There are a lot of buildings being put up, and that creates a concentration of people and a lot of (human) traffic,” he said.
He added that the necessity of expanding their branch network is magnified by a sluggish corporate lending in contrast to a robust retail market. The bank had reported an 18-percent growth in consumer lending in the first three months of 2011. Mortgage loans grew 40 percent while auto loans rose 35 percent.
Valdepenas said corporate borrowers have diversified funding sources including the capital markets, overseas lenders and internally-generated funds.
UnionBank reported a net income of P5.4 billion last year, 23.8 percent higher than in 2009. Assets grew to P253 billion while deposits stood at P192.5 billion. Capital adequacy ratio improved to 17 percent.