UBP Net Income up 9% to P12.6 Bn
UnionBank posted a net income of Php12.6 billion in 2021, 9% higher than in 2020. Earnings performance translated to above-industry return on equity of 12.0%.
Net revenues were at an all-time high of Php45.1 billion, up 7% year-on-year (YoY). Net interest income grew 4% to Php29.8 billion due to the sustained increase in net interest margins (up 9bps to 4.6%). Lower funding costs from the record increase in CASA deposits supported margin growth.
Non-interest income also rose 14% to Php15.3 billion. This was driven by higher fees, service charges, as well as FX gains, and trading income.
Loan loss provisions were 31% lower than the same period last year at Php5.8 billion as credit risk stabilized compared to 2020. The Bank’s NPL ratio was at 5.0% compared to 5.1% in 2020.
As of end-2021, total assets were at Php831.1 billion, 7% higher vs. end-2020. Total loans and receivables were at Php359.8 billion, up 6% YoY. Total deposits were higher by 8% to Php570.5 billion primarily driven by the record growth of CASA deposits at 32% to Php341.0 billion.
“Our performance in 2021 gives us a good foundation for further growth in 2022. We expect a healthy expansion in our loan portfolio, steady margins from strong CASA growth, improving credit quality, and higher revenues across our business groups this year,” said Jose Emmanuel U. Hilado, Senior Executive Vice President.
“Our 2021 performance was a validation of our digital transformation strategy. We hit key strategic milestones that ramped up our growth aspirations. Customer accounts grew by 2.5 million this year, with close to 1 million accounts coming from our digital-only account opening offering. CASA growth was at an all-time high for the 2nd consecutive year, owing to our cash management solutions. UBX hit an inflection point with its E-Commerce platforms, with transactions breaching the 1 million-mark in the month of December alone. Our digital bank, UnionDigital is also on track for commercial launch by middle of this year. Together with our digital initiatives, our top priority in 2022 is the smooth transition and migration of Citi’s consumer banking business. We are committed
to uphold Citi’s superior customer experience and provide a new home for all Citi employees in UnionBank,” said Edwin R. Bautista, President and CEO.