UnionBank Net Income Hits a Record High of Php4.3B in 2009 Monday, February 15, 2010
UnionBank of the Philippines beat market expectations, posting a record net income of Php4.3 billion for the year 2009, more than double the Php2.1 billion the Bank earned in 2008. The net income was on top of the Php2.0 billion provided for impairment losses which made all non-performing loans of the Bank more than 100% covered. Return on equity and return on assets, were at highs of 14.6% and 1.9%, respectively.
All the Bank’s core businesses performed better than expected. Gross interest income on loans and securities improved by 29.6% and 13.4%, to Php7.0 billion and Php4.0 billion, respectively. Capital markets businesses continued to contribute significantly. Revenue-to-expense ratio again topped the industry at 2.1x.
Over the last 16 years, the Bank has been growing at a fast clip with assets and deposits expanding annually by an average of 19.8% and 22.2%, respectively. UnionBank now ranks sixth biggest among private universal banks with assets of Php244.4 billion and deposits of Php194.5 billion. Balance sheet remained strong with liquid assets accounting for 37.5% of total assets and with a capital adequacy ratio of 16.1%. Top tier, middle market and consumer loans accounted for 41.2% of the Bank’s assets while capital markets portfolio made up 23.9%.
The Bank’s stock closed at Php37.00 per share in 2009, equivalent to a price gain of 72.1% from the start of the year, outperforming the stock market and the financial sector indices which grew by 63.0% and 46.6%, respectively. On January 22, 2010, the Bank’s Board of Directors approved the declaration of a cash dividend of Php2.20 per share, equivalent to 5.9% dividend yield. Record and payment date will be set upon approval of regulatory authorities. The amount of cash dividends the Bank paid to stockholders has been growing by 33.7% annually over the last ten years.
UnionBank opened seven new branches in 2009, increasing the total branch network to 175. These new offices are located in Cebu - Asiatown, Butuan City, Dumaguete City, Paseo de Magallanes, Bonifacio Global City, McKinley – Fort Bonifacio and Libertad – Mandaluyong. The Bank has 202 onsite and offsite ATMs, a call center and internet bank, www.unionbankph.com.