UnionBank eyes steady growth in loan portfolio
ABOITIZ-LED Union Bank of the Philippines (UnionBank) is seeking to sustain the growth in its loan portfolio this year, expecting expansion in both consumer and corporate segments, its top executive said.
Edwin R. Bautista, UnionBank president and chief operating officer said the bank’s total loan book stood at P190 billion in 2015.
“The growth rate of our loans was about 40% last year alone. We’ll probably grow another 4030% this year,” Mr. Bautista said in a recent interview, adding that both consumer and corporate loans are seen to expand in 2016.
UnionBank recorded lower earnings in 2015 on the back of higher expenses and amid an industry-wide slump in trading gains, even as its main businesses grew last year.
In its consolidated balance sheet and income statement filed with the Philippine Stock Exchange, the bank said its consolidated net income for 2015 reached P6.016 billion, down from 2014’s P8.407 billion.
The bank’s net income stood at P12.151 billion in 2015, up from P10.784 billion the year prior, while other income reached P7.925 billion for the January to December period. Its interest income reached P16.39 billion, higher than the P15.1 billion it booked in 2014.
Weighing on the bank’s earnings, meanwhile, were lower trading gains, which tumbled to a net P274.226 million last year from the P3.251 billion recorded in 2014. Higher expenses also pulled down its income. Other expenses also reached P11.25 billion last year, up from the P9.82 billion seen in 2014.
Last September, Mr. Bautista said there is a move to push retail banking since the margin is very good. He said then that consumer lending — auto loan, mortgage, salary loans — makes up “more than half” of UnionBank’s lending portfolio — with teachers’ loans from its thrift unit City Savings Bank Inc. seen driving the expansion — while the rest are commercial loans.
Meanwhile, Mr. Bautista said there are foreign firms seeking to partner with UnionBank, but the listed lender is currently not in need of one.
“Entertaining [foreign partners]? They are knocking. I think they are approaching everyone. But hindi pa naman namin kailangan ( We don’t need a partner yet),” he said.
UnionBank shares closed at P56.30 apiece yesterday, down by 20 centavos or 0.35%.