EARNINGS: UnionBank says Q1 net profit shrank 17%

UnionBank of the Philippines (UBP) said its net income shrank by 17 percent in the first quarter of the year. In a disclosure to the Philippine Stock Exchange (PSE), UBP said its preliminary net income for the quarter was only P708.28 million compared to P855.17 million in the same 2010 period. The bank’s expenses rose by 35 percent, eating up gains from its 91-percent higher miscellaneous income of P986.35 million from 516.29 million in the same comparable period. While other banks had deposit growth of as high as 10 percent, deposits in UBP grew by a mere 0.6 percent from P192.54 billion to P193.78 billion. UBP also reported a 57 percent increase in its interbank call loan receivables, now at P11.74 billion, from only P7.47 billion. Its earnings per share declined to P4.42 from P5.33. The bank has 186 branches, 214 automated teller machines, as well as call center and online banking operations. In 2010, it recorded a net income of P5.35 billion and a non-performing loan ratio of 3.7 percent. Aboitiz Equity Ventures is UBP’s largest shareholder with 40.91 percent of outstanding capital stock as of March 31, 2011. — ELR/VS, GMA News