"We are always looking for acquisition opportunities as long as we can find an institution that has clear capabilities of increasing our shareholder value and expanding reach to our customers," said UBP chairman and chief executive officer (CEO) Julio Aboitiz Ortiz in a press conference recently.
Meanwhile, as the bank is still on the lookout for potential bank, UBP is strengthening its growth as what Ortiz described as "organic growth."
This means that the bank is fortifying its depositors hold through their 112 branches all over the country, by taking extra care of their existing customers, while attracting more depositors.
UBP top executives led by Ortiz were here in Cebu last week to formally open the bank's first Business Class Lounge, to cater the high-end depositor market in Cebu.
The bank, which is among the top three in terms of financial and capital adequacy and profitability in the Philippine banking industry, is also moving towards intensifying its brand name especially in the Southern part of Luzon, and other areas.
A bank acquisition with stronger physical presence in this part of the country and large network base on other parts of the Philippines, could help UBP enhance its brand recognition, he said.
"We have a high standard of preference in terms of choosing a bank to be acquired by UnionBank," Ortiz said adding that the organization should fall into medium to large bank category.
Organically, he said UBP is targeting to grow at within 20 percent to 25 percent per annum, however, if the bank would be able to acquire another bank in the near future, it could help speed up its goal.
"Bank acquisition can make it faster for the bank to achieve our immediate goals," Ortiz said.
This universal bank achieved a net profit of P2.28 billion in 2004, and declared a cash dividend of P1.15 per share. The asset size hit P101.8 billion in 2004, 31.5 percent higher than the previous year's level.
According to Ortiz, although the bank has not been able to expand in terms of branch infrastructure in the last few years, its significant growth was mainly derived from its active participation the electronic banking, and other products that allows easy banking accessibility, among others.
The opening of the Cebu Business Class Lounge is meant to give premier service to its high-end depositors here, as "Cebu community is a difficult market to delight," he said.
In 2004, the bank's customer base doubled in one year, its balance sheet broke through the P100 billion level, growing by over 30 percent; and deposits increased 18 percent to P54 billion.
"Clearly we are growing rapidly. Our high-tech, high-touch strategy and investments to position the bank in the new economy are paying back in a major way," he added.
With its strategy to "pamper" the upscale depositor market in Cebu, UBP president and chief executive officer (COO) Victor B. Valdepeñas said the bank is expecting at least 10,000 more premier depositors in Cebu in the next few months.