UNION Bank of the Philippines (UnionBank), the banking vehicle of the Aboitiz family, posted a lower net income in the first nine months of 2015 on lack of trading gains.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, UnionBank said its net income was almost halved to P3.67 billion from P6 billion a year ago trading gains sagged.
The bank’s trading gains declined to P236.01 million from P2.357 billion in the same comparable period.
The substantial decline in net income will make it hard for UnionBank to stay on track with its vision of having flat growth for the whole 2015 from 2014. For the whole year of 2014, the bank’s net income reached P8.4 billion.
Beyond trading gains, the company’s core businesses registered growth. Its net interest income went up by 7.8 percent to P8.76 billion from P8.119 billion a year ago.
This was attributed to a 5.4-percent increase in loans to P11.89 billion from P11.28 billion, while total deposits decreased by 0.9 percent to P3.13 billion from P3.16 billion.
Non-interest income declined by 23 percent to P5.15 billion from P6.76 billion, primarily on lower trading gains despite an increase in fee based income.
The bank’s total capital was up 2.4 percent to P57.17 billion from P55.83 billion.