MANILA -- UnionBank said Monday rising interest rates and the lack of new loan releases to teachers squeezed margins, causing a near 5-percent drop in net income in the January to September period.
The country's ninth largest lender said net nine-month net income was at P6.1 billion, from P6.4 billion during the same period in 2017.
Margins are expected to improve as assets reprice and as its subsidiary, CitySavings, gains access to the Department of Education's payroll system, UnionBank said.
Net revenues in the first 9 months of the year grew 3.3 percent to P18.9 billion. Total loans rose 18.6 percent to P315.3 billion, with retail accounting for 33 percent of the total loan portfolio, UnionBank said.
Total assets grew 17 percent to P643 billion, including P441.4 billion in deposits, the lender said.
"We remain confident in sustaining our robust earning asset growth which shall be supported by our successful P10 billion rights offering," said UnionBank treasurer and CFO Jose Emmanuel Hilado, Treasurer and CFO.