Delgado assumed leadership of UnionBank at the start of this year after the retirement of longtime CEO Edwin Bautista, who will remain on the board of the bank.
“After completing the migration of Citi-branded consumer accounts early last year, we continue to invest heavily to ensure that we elevate customer experiences,” Delgado said in a statement on Monday.
“We are committed to delivering differentiated product offerings and experiences to our now 17 million customers across all of their preferred customer touchpoints. I am confident that our renewed focus on customer-centered innovation will allow us to deliver greater value this year and in the years to come,” she added.
Record revenues
In its filing, UnionBank said net revenues increased by 12.4 percent to P79.5 billion, while net interest earnings rose 11.6 percent to P58 billion.
This was driven by a 49-basis-point jump in net interest margin to 6 percent—among the highest in the industry, the filing showed.
“Moreover, the bank’s fee income as a proportion of its assets is nearly double the Philippine banking industry’s average, fueled by increasing customer transactions such as bills payments and funds transfers, as well as interchange and other card-related fees,” UnionBank said.
Consumer focus
“Our retail-focused strategy allowed us to book record-high top-line revenues. We should see continued improvements in our net income moving forward, as we realize the synergies brought about by our integrated consumer operations,” said Manuel R. Lozano, chief financial officer.
Consumer loans now make up 61 percent of UnionBank’s total loans, nearly three times the industry average.
These include credit cards, mortgages, personal loans, and auto loans, serving 17 million retail customers. The bank also cut operating costs by 1.4 percent to P44.3 billion, despite investments in customer engagement programs.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.