Union Bank of the Philippines said Monday net income surged 94 percent in the first half to P8.3 billion from a year ago, on sustained strength in core businesses.
The bank said in a disclosure to the stock exchange this income translated into a return on equity of 15.9 percent. Net revenues increased 16 percent to P25.5 billion while net interest income grew 7 percent to P14.8 billion, driven by higher net interest margins at 4.7 percent compared to 4.4 percent a year ago.
Non-interest income also rose 33 percent to P10.7 billion on the back of strong trading gains, higher foreign exchange income, and higher fees and commissions.
Loan loss provisions were recorded at P3.1 billion, 56 percent lower than last year’s as non-performing loans started to stabilize. The bank’s NPL ratio improved to 4.7 percent from 5.1 percent as of year-end 2020.
UnionBank chief financial officer and treasurer Jose Emmanuel Hilado said the bank’s strong first-half performance and good trajectory gave them confidence that it would hit its full-year target.