MANILA -- Union Bank posted a net income of P6.4 billion in the first half of 2023, up 6 percent from the same period last year.

The bank said net interest income grew 41 percent to P24 billion on the back of their strong loans portfolio and better net margins. The lender said their loan portfolio increased by 43 percent.

Net revenues for the bank climbed by 60 percent to P34.4 billion. Net interest margin increased by 60 basis points to 5.2 percent.

The bank said strong focus on high yielding consumer loans more than offset the impact of the rising cost of funds. The bank’s proportion of consumer loans to total loans improved to 55 percent in the first 6 months of 2023, versus 42 percent in the same period in 2022.

Union Bank said their operating cost was up by 82 percent to P21.8 billion, due to the one-time integration cost of the acquired Citi consumer business and the establishment of UnionDigital.

“We consider this year as a period of investing for our future. Our costs will temporarily be elevated this year, while the integration of the acquired Citi consumer business is ongoing," said the bank's executive vice president and chief finance officer Manuel Lozano.

Lozano stressed that UnionBank has a healthy earning asset
base, and a well-diversified consumer loan mix, with segments are growing in double digits.

Union Bank posted a net income of P3.4 billion in the first quarter of 2023.

• UnionBank says Q1 net income up 30 percent to P3.4 billion

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