Union Bank of the Philippines (UnionBank) grew its net income by 11.29 percent to P4.37 billion in the first six months this year, from P3.92 billion in the same period last year, as interest incomes rose in double-digits led by trading and investment securities at 26.01 percent, according to a regulatory filing at the Philippine Stock Exchange.
Total interest income increased by 14.91 percent to P11.19 billion, from P9.74 billion. The yields include loans and receivables, which rose by 13.12 percent, and interbank-loans receivables, which surged by 198.94 percent.
Return on deposits climbed by 32.97 percent to P2.70 billion as time deposits also expanded. This contributed to the total interest expense that reached P3.12 billion, or 26.44 percent higher than P2.47 billion a year ago.
However, interest income due from the Bangko Sentral ng Pilipinas and other banks sunk by 38.15 percent to P0.19 billion, from P0.31 billion.
Thus, the interest-incurring assets and liabilities resulted in a net interest income of P8.07 billion, from P7.27 billion a year ago, up by 10.99 percent.
Other incomes from services charges, fees and commissions also moved up by 13.01 percent to P2.24 billion. Gains from sale and redemption of nontrading financial or physical assets contributed P0.27 billion.
Expenses, on the other, increased by 16.82 percent to P2.04 billion, from P1.75 billion, with higher deposit insurance and fees on credit card, advertising, security, messengerial, clerical and janitorial services.
However, depreciation and amortization costs declined by 5.70 percent as transportation equipment was improved.
