UnionBank net income up 12% to $233.59m in 2022

Revenue hit a record high, whilst consumer loans rose after acquiring Citi’s assets.

Union Bank of the Philippines earned over $233.59m (PHP12.7b) in 2022, 16% higher than in 2021, according to a bourse filing. Net revenue hit a record high $960.1m (PHP52.2b), rising 16% from the previous year.

Revenue mainly came from net interest income and fee-based income, which UnionBank said compensated for the absence of trading gains.

Net interest income rose 31% to $715.4m (PHP38.9b) on account of higher margins and volume. Margins is 27 basis points (bps) higher to 4.9%, which UnionBank said was driven partly by the higher proportion of consumer loans to total loans.

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Fees and other income doubled to $246.4m (PHP13.4b), which the bank attributed to the consolidation of the acquired Citi consumer business, as well as growing digital customer transactions. 

Customer loans jumped by 42% to $881.4m (PHP479.b). UnionBank’s acquisition of Citi’s consumer business added to this rise. 

Total deposits were up 25% to $138m (PHP711.3b) due to the overall expansion of the retail customer base and the strong take-up of cash management products from large corporations, the bank reported. 

(US$1 = PHP54.368. Conversion from Bangko Sentral ng Pilipinas (BSP) website; as of 30 January 2023)