UnionBank 1st quarter income reaches P470M

UnionBank of the Philippines reported a net income of Php 470 million in the first quarter of 2003. This amount is 37% higher than the net income generated in October-December 2002 of Php 344 million, and only slightly lower (-7%) than the January-March 2002 net income of Php 506 million. The first-quarter income was broadly based, with both retail and corporate customers showing incomes versus the same period last year. Income from capital market activities continued to be a significant contributor to the Bank’s bottomline.

Total resources expanded by 30.5% year-on-year from end-March 2002 level of P52.6 billion to P68.6 billion as of March 31, 2003 propelled by the increase in deposit liabilities of 33% from P31.9 in end-March 2002 to P42.4 billion as of end-March 2003.

Capital funds reached P13.9 billion as of end-March 2003. This resulted in a risk-adjusted capital adequacy ratio of 43.01% as of March 2003. This ratio is four times the BSP requirement of 10%, more than three times the industry average of 13.2% and up from UnionBank’s level of 38.59% in
December 31, 2002.

UnionBank set aside P60.0 million as provision for loan losses in the first quarter of 2003. This additional reserve raised UnionBank’s loan loss coverage to 79%, compared to the industry’s 50%. As of March 31, 2003, UnionBank’s non-performing loans ratio stood at 14.6% versus the industry’s latest ratio of 15.08% as of February 2003.

The Bank’s operating efficiency further improved as its revenue-to-expense ratio increased from 1.80x to 2.14x, and remained one of the best in the banking industry.