Union Bank of the Philippines posts cheery results

Another cash-flush Philippine bank reports sterling bottom line results for 2011.

Union Bank of the Philippines, a universal bank partly owned by the government, registered a 23% jump in net profit for 2011. That translates into an unaudited US$153 million last year as against its previous record annual net profit of US$124 million in 2010.

The bank’s trading gains surged 89% to US$125 million in 2011. Other income from service charges, fees and commissions rose by close to a quarter to US$19.7 million from 2010. Net loans and receivables increased by 10.7% to US$2.4 billion, giving the bank enough room to expand lending.

Net interest income, however, dropped slightly by one percent to US$162 million from 2010. Its loan book expanded by double-digits but margins narrowed because of low yields and stiffer competition.

UnionBank ended 2011 with a deposit base of US$4.7 billion, up 6% year-on-year.

UnionBank is a partnership among the Aboitiz Group, Insular Life and the government’s Social Security System. It is the Philippines’ eighth-largest bank in resources.

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