MANILA, Philippines - Earnings of Aboitiz-led Union Bank of the Philippines plunged 39 percent in the first nine months due to a sharp drop in trading gains.
Union Bank reported to the Philippine Stock Exchange (PSE) it booked a net income of P3.67 billion from January to September, P2.33 billion lower compared to P5.99 billion in the same period last year.
The bank’s net interest income rose 7.88 percent to P8.78 billion in the first nine months compared to P8.12 billion in the same period last year.
Interest income from loans and receivables jumped 23.2 percent to P8.57 billion from P6.96 billion. Interest earnings from trading and investment securities fell 17.4 percent to P2.65 billion from P3.21 billion, while interest income from the Bangko Sentral ng Pilipinas (BSP) plunged 41 percent to P648.15 million from P1.09 billion.
Interest expense was steady at P3.13 billion in the first nine months.
Union Bank’s non-interest income from service charges, fees and commissions as well as trading gains fell 23.66 percent to P5.16 billion in the first nine months from P6.76 billion in the same period last year.
The bank said trading gains plunged 90 percent to P236.01 million from January to September compared to P2.36 billion in the same period last year.
The bank’s premium revenues jumped 182 percent to P1.69 billion from P599.83 million spurred by the acceleration in pre-need sales of First Union Plans Inc. (FUPI) but miscellaneous income fell 62.7 percent to P500.28 million from P1.34 billion due largely to foreign exchange losses and the reduction in trust fund income of FUPI.
Union Bank’s total other expenses increased 16 percent to P8.42 billion from P7.62 billion due to higher depreciation and amortization costs mainly due to the branch expansion initiatives of City Savings Bank Inc.