UBP maintains positive results

MANILA, Philippines - The Union Bank of the Philippines (UBP) has maintained positive results in its core business despite a drop in net earnings during the first nine months of the year.

The bank’s net income slipped 31.5 percent to P5 billion from January to September this year from P7.33 billion a year ago.

Profits rose 60.5 percent to P1.83 billion during the nine-month period from P1.14 billion in the same period in 2013.

Net interest income amounted to P7.97 billion in the first nine months of 2014, 24.72 percent better than the P6.39 billion in the same period last year.

Loans expanded by 13 percent, or from P6.11 billion in 2013 to P6.96 billion this year.

Deposits meanwhile grow slightly to P2.86 billion this year from P2.84 billion in the same period in 2013.

However, net trading gains ate into its earnings, falling by 72 percent to just P1.6 billion in the first nine months of 2014, from the P5.8 billion in the same period last year.

Premium revenues likewise took a beating to P599 million, 108-percent lower from last year’s P1.255 billion.

Non-interest income declined 76.2 percent to P5.9 billion this year from P10.4 billion last year.

As of March 2014, the bank was the country’s ninth largest bank in terms of total assets and loans whie it ranked seventh and 10th based on total deposits and capital accounts, respectively.

Aboitiz Equity Ventures controls 44.5 percent of UBP, while the other major stakeholders are The Insular Life Assurance Co. Ltd. with 16.21 percent stake, and government pension fund Social Security System (SSS) with 13.99 percent.