The Aboitiz-led commercial bank Union Bank of the Philippines (UnionBank) posted a net income of P12.6 billion in 2021 or 9% higher than in 2020. According to UnionBank, its net revenues reached P45.1 billion, up 7% year-on-year (YoY), which the bank said is “an all-time high.”
UnionBank points to digital acceleration and massive digital adoption amid the COVID-19 pandemic as reasons for the growth.
Its net interest income grew 4% to P29.8 billion due to the sustained increase in net interest margins (up 9bps to 4.6%). Lower funding costs from the record increase in CASA deposits supported margin growth. Non-interest income also rose 14% to P15.3 billion.
“This was driven by higher fees, service charges, as well as FX gains, and trading income,” the bank said.
As of end-2021, total assets stand at P831.1 billion, 7% higher vs end-2020. Total loans and receivables were at P359.8 billion, up 6% YoY. Total deposits were higher by 8% to P570.5 billion primarily driven by the record growth of CASA deposits at 32% to Php341.0 billion.
“Our performance in 2021 gives us a good foundation for further growth in 2022. We expect a healthy expansion in our loan portfolio, steady margins from strong CASA growth, improving credit quality, and higher revenues across our business groups this year,” said Jose Emmanuel Hilado, SEVP, UnionBank.
“Our 2021 performance was a validation of our digital transformation strategy,” aid Edwin Bautista, President and CEO, UnionBank. “We hit key strategic milestones that ramped up our growth aspirations.”
Customer accounts grew by 2.5 million this year, with close to 1 million accounts coming from its digital-only account opening offering. CASA growth was at an all-time high for the second consecutive year, owing to UnionBank’s cash management solutions.
UBX hit an inflection point with its e-commerce platforms, with transactions breaching the one-million mark in the month of December alone.
“Our digital bank, UnionDigital is also on track for commercial launch by the middle of this year,” Bautista said. “Together with our digital initiatives, our top priority in 2022 is the smooth transition and migration of Citi’s consumer banking business. We are committed to upholding Citi’s superior customer experience and providing a new home for all Citi employees in UnionBank.”