Union Bank H1 income up 28% to P2.86 billion

MANILA, Philippines - Union Bank of the Philippines (UBP) has reported a net income of P2.86 billion in the first semester of 2011, up 28 percent from the P2.22 billion recorded in the same period last year.

Its full year income in 2010 registered at P5.3 billion, up nearly 24 percent from P4.32 billion in 2009.

At the end of 2010, the bank’s asset base grew to P253 billion while deposits stood at P192.5 billion. Capital adequacy ratio improved to 17 percent.

Net interest income after impairment of losses, however, fell 12.26 percent, or from P3.32 billion in the first semester of 2010 to P2.91 billion this year.

In contrast, net trading gains ballooned nearly 200 percent to P2.1 billion in the first six months of 2011 from P747 million in the same period last year.

UBP executive vice president Edwin R. Bautista said while the first three months of the year was slow for the Aboitiz-led commercial bank as well as most other banks in terms of trading gains, it was entirely different in the second quarter.

“All the banks made adjustments which have resulted in improved returns in the second quarter, and that is also true for Union Bank,” Bautista added.

Likewise, premium revenues expanded to P1.1 billion this year, or about 200 percent from the P400 million in the first semester of 2010.

Loans expanded to P3.3 billion in the first six months of 2011, up slightly by five percent from P3.1 billion last year.

Deposits likewise improved to P2.2 billion this year, from P2.1 billion in the first semester of 2010.

Total capital grew from P35.9 billion in the first six months of 2010 to P37.3 billion this year.

However, total resources shrunk to P235 billion at the end of June this year or roughly seven percent lower than the P252 billion at the end of the first semester in 2010.

UBP operates a branch network of 186 nationwide, but 120 are located in the Greater Metro Manila area. It also operates 300 automated teller machines (ATMs) in 250 sites, as some branches have two or more ATMs.