Union Bank profit slips 49% to P3.1 B in H1

MANILA, Philippines - Union Bank of the Philippines (UBP) reported a 49 percent drop in net earnings in the first six months of 2014, from P6.19 billion in 2013 to just P3.2 billion.

In the April to June period alone, profit fell 36 percent from P2.18 billion in the second quarter of 2013 to P1.6 billion this year.

But net interest income grew 29 percent from P4 billion in the first semester of 2013 to P5.2 billion.

Loans expanded slightly to P4.4 billion this year from P4 billion in the same period in 2013.

Deposits shrunk from P1.97 billion in the first six months of 2013 to P1.93 billion this year.

Non-interest income went down 57 percent, or from P8.7 billion to P3.7 billion this year.

In the second quarter of the year alone, this shrunk 43.4 percent to P1.9 billion from P3.4 billion last year.

Net trading gains was again one of the major leaks as it practically dried up from P5.6 billion in the first semester of 2013 to a mere P988 million this year.

Premium revenues trimmed to just P300 million in the first semester this year from P1 billion in the same period last year.

Operating expenses in the period fell from P5.7 billion last year to a manageable P4.7 billion.

Provisioning for probable losses reached P207 million this year from P369 billion in the same period last year.

Meanwhile, total loan portfolio shrunk to P122 billion end June this year, or 14 percent lower than the P142 billion as of end-2013.

Total deposit liabilities hardly changed from P298 billion in end-2013 to P297 billion in the six months to June.

Total resources fell P373.2 billion from P396 billion at the start of the year.

Capital funds stood at P47.6 billion, up from P44.9 billion.