May 25, 2015

Union Bank of the Philippines (UBP) announces succession plan

Union Bank of the Philippines (UBP) has reportedly announced that company president and COO Vic Valdepenas will step down from his posts by yearend. The Philippine Star today reported that effective 1 Jan 2016, Mr. Edwin Bautista, senior executive vice president for commercial and transaction banking, will take charge as the new company president.

Aside from this, the bank announced that Mr. Eugene Acevedo, senior executive vice president for corporate and retail banking, will also act as the chairman for City Savings Bank, UBP’s thrift bank subsidiary. Lastly, Mr. Jesus Roberto Reyes, senior executive vice president and treasurer, was also appointed as chief finance officer of the bank.

Our take: UBP has announced its succession plans six months ahead of its effectivity. In our view, the recent appointments mark a departure from the bank’s traditional dependence on treasury operations. The recent appointments show the bank’s thrust to grow other segments of its core banking business, most notably its consumer market exposure.

However, it remains to be seen how the bank will execute the change in focus and how aggressive it will be in growing its balance sheet given the recent management changes . – WealthSec