Union Bank's profit plunges in Q1

Union Bank of the Philippines said its profits plunged in the first quarter of 2008, as trading gains went down due to a strong peso. Union Bank said its net income reached P602.49 million in the first three months of 2008, 170 percent lower compared with P1.91 billion in the same period in 2007. This was despite a 21.64-percent increase in interest income at P1.25 billion and a 7.82-percent decline in operating costs to P1.21 billion. The increase in interest income was attributed to improved lending due to aggressive credit positioning. Victor Valdepeñas, the bank’s president and chief operating officer said interest income from lending grew 6.94 percent while interest expense on deposits and bills payable dropped by 35.66 percent due to the reduction in deposit cost and funding requirements.

in Manila Times by Maricel E. Burgonio
May 03, 2008
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