UnionBank nets P8.4-B in 2017

MANILA -- Listed Aboitiz-led UnionBank of the Philippines on Friday reported a 16.35-percent decline in net profit in 2017 due mainly to lower earnings from trading and non-trading financial assets.

UnionBank told the local bourse its net income reached PHP8.42 billion in 2017 compared to the PHP10.07 billion recorded last year.

In its income statements, the bank said interest income, which includes loans and other receivables, trading and investment securities, cash and cash equivalents and interbank loans receivable,  actually surged by 22.26 percent to PHP24.59 billion from PHP20.11 billion.

Excluding last year’s one-time gains from securities trading, core income was up by a robust 30.4 percent to PHP8.2 billion from PHP6.3 billion a year ago.

However, earnings from sale of trading and non-trading financial assets reached only PHP266.58 million in 2017 from PHP3.81 billion the previous year, while interest expense  rose to PHP6.95 billion in 2017 from PHP5.27 billion the previous year.

Other expenses, including taxes and licenses, also rose from PHP11.75 billion to PHP13.50 billion.

“We are pleased to continue making major headway on both our business and digital transformation strategies. Financial results were driven by recurring income across all customer business segments,” said UnionBank President and Chief Executive Officer Edwin R. Bautista.

“Amid investments in various digital initiatives, the Bank continues to sustain very solid profitability results,” he said. (PNA)