Union Bank to Collect ₱20-B in Capital

The Union Bank of the Philippines is planning to raise ₱20 billion in capital from existing shareholders and new investors as a 5% dip in net income was reported for the first nine months of 2022.

The bank disclosed to the Philippine Stock Exchange that its Board of Directors has approved the capital raising initiatives via possible stock rights offering to all existing shareholders or private placement.

Union Bank has said that it recorded a net income of ₱10.1 billion in the first nine months of 2022. In the same period back in 2021, the net income was recorded at ₱10.7 billion.

“Our earnings result translates to a return on equity of 10.4 percent which takes into consideration the impact of the additional capital of P40.0 billion from our Stock Rights Offer last May 2022,” stated the bank.

Meanwhile, net revenues minus trading gains rose by 37% year-on-year to ₱36 billion. Net interest margin went up from 4.6% last 2021 to 4.9% this year, due to the higher CASA ratio and the expansion of earning assets.

Driven by forex incomes, bancassurance fees, card transactions, and customer fund transfers, fee-based income rose to ₱5.1 billion or by 64%.

By the end of September, the bank had breached the one trillion mark in terms of assets for the first time. The total assets had a 37% year-on-year increased and were pinned at ₱1.05 trillion.

UnionBank’s Chief Finance Officer, Jose Emmanuel U. Hilado has stated that “We have successfully closed the acquisition of the Citi consumer business and became the legal owner of the portfolio last August 1, 2022. The transaction added P98 billion of total assets to the Bank, including P65 billion in net loans and P30 billion in cash. It also included P67 billion in deposits with a CASA ratio of 89 percent,”

Source: Manila Bulletin