UnionBank,

pared to its P139- billion loan book as of end-2014.

Moving forward, UnionBank sees its loan portfolio rising a little over its current level by yearend.

This, however, will not be enough to lift the lender’s growth this year over its 2014 record.

“Right now, we are I think more than 50%. In this market, once you hit 50% that’s already a big thing since the consumer market is small compared to the corporate loan market. So if you want to be big in terms of balance sheet, you have to be big in the corporate lending... [ but] everyone wants to go into retail since the margin is very good,” Mr. Bautista said.

“I think we will end the year near where we are right now or pretty much a little bit more, 5-10% from where we are today. Before, if you look at our balance sheet, securities made up bulk of that, but now loans in general take up bigger share compared to securities,” he further said referring to the bank’s loan portfolio growth.

A STRETCH

Mr. Bautista added: “It will be difficult to surpass last year’s [ growth]. I think for all the banks, it will be a stretch. I think it will already be a big achievement if we match our level last year.”

The bank earlier targeted a 5% growth in net income this year to P8.7 billion on the back of the continued expansion of its lending business, with at least a quarter of the earnings guidance to come from City Savings Bank, Inc. ( CSB), a Cebu- based thrift lender it took over in 2013. The move consolidated the Aboitizes’ banking ventures under one company. UnionBank, a universal bank, is majority- owned by Aboitiz Equity Ventures, Inc., while CSB is also majority-owned by AEV and its food unit, Pilmico Foods.

Meanwhile, UnionBank is open to possible acquisitions, Mr. Bautista said, “if the right opportunity presents itself” although the listed lender’s main focus “to strengthen” its current base.

The bank is also currently maximizing its growth “to the extent that our capital allows without raising more capital right now” but UnionBank may tap the debt market should there be a need to do so.

“We don’t see a need yet to raise the capital. We are in a sustainable growth trajectory that our income is enough to provide capital for the growth. But if we see an opportunity ... then I think we will consider raising more capital. But we also don’t want to raise capital prematurely because it will reduce our RoE (return on equity),” he said.

UnionBank saw its net income for the first six months of 2015 plunge to P3 billion compared to the P4.467 billion it posted in the same period a year ago.

UnionBank shares closed at P53.80 apiece last Friday, gaining P1.80 or 3.46% from its previous close of P52 each.