UnionBank reports P37-B revenue in H1 2024

UnionBank reported top-line revenues of P37.3 billion for the first half of 2024, an 8.3% increase from the same period last year. Net interest income rose by 14.8% to P27.5 billion, driven by a 55-basis point improvement in the net interest margin, which now stands at 5.7%. Consumer loans, which constitute 59% of the bank’s total loan portfolio, have contributed to this strong performance.

Chief Financial Officer Manuel R. Lozano noted, “We continue to post strong topline revenues. Now that we have completed the integration of the acquired Citi consumer business, the Parent Bank’s expenses have naturally declined. As a result, our net income in the second quarter of the year is at P3.1 billion, which is up by more than 50% from the P2.0 billion booked in the previous quarter. Our focus in higher margin consumer segment and continued expansion of our customer base will allow us to sustain this growth momentum in the years to come.”

Operating expenses for the bank improved by 2.4% year-on-year, totaling P21.6 billion. The successful integration of the Citi consumer business led to a reduction in IT expenses by nearly P1 billion quarter-on-quarter, though this was partially offset by costs related to customer acquisition and revenue growth. The bank’s total customer base has grown to over 15 million.

As of June 2024, UnionBank’s total assets were P1.1 trillion, with total loans and receivables at P514.8 billion and low-cost CASA deposits at P427.8 billion.