UnionBank’s net income for the first nine months of the year grew by 26% year-on-year (YoY) to Php10.7 billion on account of a 9% increase in revenues. This translated to a return on equity of 13.6%.
Net interest income increased 3% to Php22.0 billion on the back of higher margins at 4.6% vs. 4.5% a year ago. Lower funding costs coming from the robust growth of our CASA deposits supported our margin growth. Non-interest income rose 22% to Php12.6 billion due to strong trading gains in the first half of the year, higher foreign exchange income, and increased fees and commissions.
Loan loss provisions booked was lower by 45% at Php4.1 billion amid the continued stabilization of non-performing loans. NPL ratio was posted at 4.9% vs. 5.1% as of year- end 2020.
As of end-September 2021, total assets stood at Php767.8 billion while total loans were at Php341.5 billion, 4% lower given the subdued demand for corporate loans. Total CASA deposits sustained its record growth of 26% to Php318.3 billion.
Digital onboarding initiatives continued to gain traction. We now have 3.6 Mn registered users across our digital platforms as of end-September 2021, 2.4x higher than the same period last year. UBX also ramped up onboarding of customers with about 180,000 MSMEs and channel partners signed up across its platforms, 46% higher than the same period in 2020. Our digital bank, UnionDigital, which is one of only 6 licenses granted by the BSP, is on track for launch in 2022.
“With our current momentum and the reopening of the economy, we are confident that the worst of the pandemic is behind us. We will be entering 2022 with a solid base from where we can resume our pre-pandemic growth trajectories,” said Edwin R. Bautista, President and CEO.
