Union Bank forecasts over 10% profit hike

MANILA, Philippines - Aboitiz-led Union Bank of the Philippines is optimistic its net income would grow more than 10 percent this year, a top bank official said.

“Prospects now running to third quarter seem to point that the full year performance at upward of 10 percent. We are still on track to meet higher than the 10 percent income growth,” Union Bank president Vicente Valdepenas said.

He said their performance in the first nine months was favorable, though not as high as the figure in the first half.

“First nine months income, of course, is very positive compared to the previous year but there could be deceleration because of the (volatilities) in the capital market,” the Union Bank executive said.

Valdepenas said the continuing positive performance of the bank is anchored on the growth of the country as a whole.

“The Philippine economy is still growing,” he said.

The bank official said their growth would also be boosted by consumer banking activities, primarily housing and auto loans.

In 2012, Union Bank registered a 15-percent increase in net earnings to P7.58 billion from P6.59 billion in 2011.

The bank has been aggressively expanding its operations with the recent acquisition of City Savings Bank.

Union Bank has a nationwide branch network of 186 and 232 onsite and offsite automated teller machines (ATMs).

Based on its proposed expansion plan, the bank would add more branches to the existing branches of City Savings to reach 40 branches.

As a thrift bank, City Savings is primarily engaged in offering loans to school teachers under the Department of Education’s Automatic Payroll Deduction System.