October 25, 2015

Union Bank’s 9M15 earnings decline 33% to P3b

Union Bank of the Philippines (UBP) today disclosed that its 9M15 earnings amounted to P3b, 33% lower YoY. The bank’s results were mainly dragged by the 60% decline in trading gains (to P795m) and 56% drop in miscellaneous income (to P450m).

These resulted in the 28% YoY decline in non-interest income to P3.5b. On the other hand, the bank’s net interest income grew 4% YoY to P5.6b, supported by the 33% increase in loans (to P164b) and 22% growth in its investment portfolio (to P104b). However, as a result of lower non-interest income, net revenues declined 11% YoY to P9.1b.

While operating expenses grew by just 4% YoY to P5.0b, provisions were 32% higher at P275m as the bank started to provide more for its growing consumer loan portfolio. UBP’s 9M15 results have come significantly below the 2015E consensus expectation of P7.3b, accounting for only 41% of the estimate. - WealthSec