MANILA, Philippines - Union Bank of the Philippines, the banking arm of the Aboitiz Group, plans to issue long-term negotiable certificates of deposit (LTNCD) amounting to P5 billion within the year.
UnionBank president and chief operating officer Victor Valdepenas told reporters on the sidelines of the bank’s annual stockholders meeting that they intend to issue long-term notes to take advantage of the prevailing low interest rates.
He said their treasury group is now preparing the terms for the issuance, which is expected anytime within the year.
At the same time, Valdepenas said with the steady earnings registered in the first quarter of the year, UnionBank is contemplating on raising its income guidance level to 20 percent, higher than the industry’s 10-15 percent range.
For the first quarter, UnionBank reported an unaudited net income of P4.002 billion, a strong 40.7 percent increase from P2.843 billion in the same period in 2012.
For the whole of 2012, the bank registered a 15-percent increase in net earnings to P7.58 billion from P6.59 billion in 2011.
Valdepeñas said they also expect the second quarter performance to be “favorable†as deposits and loans continue to increase.
For his part, UnionBank chairman and chief executive officer Justo Ortiz said earnings would also be boosted by the expansion of the bank’s network following its recent acquisition of Cebu-based City Savings Bank.
Ortiz said they intend to increase City Savings’ network to 60 percent of the Luzon market as the thrift bank’s operation remains basically concentrated in Cebu.
UnionBank’s total resources expanded 13 percent to P315 billion, from P279.7 billion registered at the end of 2012.
Capital funds stood at P52.6 billion, or 10 percent more than the P47.8 billion at end-2012.
UnionBank has a branch network of 186, with 232 onsite and offsite automated teller machines (ATMs).