MANILA - UnionBank of the Philippines said its net income reached P2.6 billion in the first quarter of 2022.

The net income was lower by 45 percent compared to 2021 due to the "extraordinary gains" recorded in the same period last year, the bank said in a disclosure to the stock exchange.

Recurring income, meanwhile, grew 21 percent due to the improved net interest margin, expansion of Current Account Savings Account (CASA), higher foreign exchange income as well as fee-based income from the growth of InstaPay charges and interchange fees, among others, UnionBank said.

"While the ongoing Russia-Ukraine conflict could adversely affect investor and consumer sentiment, we think that the country's economic fundamentals are strong enough to weather the challenges ahead," UnionBank Treasurer and Corporate Planning Services Head Jose Emmanuel Hilado said.

"We, therefore, remain optimistic that improving credit appetite and spending patterns will allow us to sustain momentum in our recurring income for the rest of 2022," he added.

The bank is also "on track" to achieve milestones set for the year, said UnionBank president and CEO Edwin Bautista.

UnionBank has secured the approval of the Philippine Competition Commission and the Insurance Commission for its acquisition of Citi's consumer business in the country.

Its digital bank UnionDigital is also set to launch by the second half of the year, Bautista added.

UnionDigital is among the only 6 digital banks that secured digital banking licenses from the Bangko Sentral ng Pilipinas in 2021.

• Antitrust body OKs UnionBank's acquisition of Citi PH consumer banking business
• UnionBank acquires Citigroup’s Philippine consumer banking business
• BSP approves UnionBank application to create digital bank

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