Union Bank of the Philippines (PSE: UBP) has reported 2018 net income of PhP7.3 billion. Total income taken to retained earnings amounted to PhP8.5 billion, inclusive of adjustments related to the adoption of PFRS9 accounting standards during the year.
As of end 2018, UnionBank’s total assets reached PhP674.2 billion. Customer loans increased by 16% year-on-year to PhP326.1 billion, with retail loans accounting for 33% of total loans. All customer businesses, except CitySavings, posted double-digit growth in volume.
“The strong performance of key business segments provided the cushion to the margin compression arising from higher interest rates. We expect margins to be better in 2019 as assets reprice. We also expect CitySavings’ performance to improve this year, particularly due to its continued access to DepEd’s automatic payroll deduction system,” said Jose Emmanuel U. Hilado, treasurer and CFO at UnionBank.
“We posted strong returns over the past three years while making major investments in technology and people. From 2015 to 2017, we laid out the technology and infrastructure and boosted organizational capabilities to support our digital strategy. In 2018, we focused on the critical digital customer touchpoints. 2019 will usher the 3rd phase of our digital transformation journey—the scaling up of these touchpoints through enhanced features in our mobile app, roll-out of more Arks, and launch of our business banking platform,” said Edwin R. Bautista, president and CEO of UnionBank.