UnionBank delivered P12-B net income in 2024
Aboitiz-led Union Bank of the Philippines (UnionBank) booked a 31-percent surge in its 2024 earnings as it started to unlock gains from its acquisition of US banking giant Citi’s local consumer and retail business.
In a disclosure to the stock exchange on Monday, the Aboitiz-led bank said its net income reached P12 billion from P9.2 billion in 2023 due to gains in its consumer business, margin expansion and higher fee-based revenues.
UnionBank’s top line jumped by 12.4 percent to a record P79.5 billion on the bank of its “retail-focused strategy,” according to UnionBank chief financial officer Manuel Lozano.
Net interest income likewise expanded by 11.6 percent to P58 billion.
Following its acquisition of Citi’s consumer business, UnionBank’s consumer loans now account for 61 percent of its loan portfolio, or nearly thrice the industry average, it said.
UnionBank completed the migration of Citi’s consumer accounts in March 2024. This involved the transfer of around 1.5 million customer and transaction records.
“After completing the migration of Citi-branded consumer accounts early last year, we continue to invest heavily to ensure that we elevate customer experiences,” UnionBank president and CEO Ana Aboitiz Delgado said in a statement.
“We are committed to deliver differentiated product offerings and experiences to our now 17 million customers across all of their preferred customer touch points,” Delgado added.
Expenses, which included investments to attract more customers, eased by 1.4 percent to P44.3 billion.
UnionBank, the country’s ninth largest bank, has also been investing heavily in its digital banking unit in hopes of further widening its consumer portfolio.
Last September, the company injected another P1.6 billion into UnionDigital Bank Inc. to support “ongoing business operations and allow it to deliver sustainable growth.”
This follows an initial P900-million investment in October 2023 and another P1.8 billion in November that year.
Launched in 2022, UnionDigital was meant to drive the bank’s digital loan expansion by providing access to credit and loan applications through its mobile app.
