Union Bank of the Philippines (UnionBank) reported a net income of P8.6 billion for the first nine months of 2024, with a third-quarter income of P3.5 billion. This quarterly figure shows a 76% increase compared to the same period in 2023 and a 14% rise from the previous quarter.
Net revenues reached P57.7 billion, up 9.2% from last year, largely due to the bank’s growing consumer portfolio. Net interest income climbed 14.2% to P42.6 billion, with a net interest margin of 5.9%, among the highest in the industry.
“The large proportion of our consumer portfolio is reflected in the continuous improvement of the bank’s net interest margin,” Manuel Lozano, CFO of UnionBank, said in a statement. “With expectations of declining interest rates, there is still room for further margin expansion.”
The bank’s consumer loans now represent 60% of its loan portfolio, above the industry average, and CASA deposits totaled P419.4 billion. UnionBank’s operating expenses stood at P33 billion, with IT costs down 17.3% from last year, following the integration of Citi’s consumer business.
“The leading indicators brought about by our growing retail customers are very promising,” said Edwin Bautista, CEO of UnionBank.. “Our new-to-bank credit card customers per month are averaging 2.5 times higher than last year, and digital fund transfer transactions have grown by 40% year-on-year.”
UnionBank’s customer base has grown to over 15 million, with 500,000 new credit card clients added this year. Digital engagement also increased, with 5.6 million active users on digital channels, up from 4.7 million in 2023. Total assets reached P1.1 trillion as of September 2024.