Union Bank Of The Philippines · PSE:UBP
Union Bank Of The Philippines — FY2022 Earnings Presentation
12 slides from Union Bank Of The Philippines's earnings presentation, Mar 8, 2023
Slide 1: Full Year 2022 Financial & Operating Results
Full Year 2022 Financial & Operating Results Wednesday, March 8, 2023 1
Slide 2: Disclaimer
Disclaimer This presentation and the information contained herein (this "Presentation") are the sole and exclusive property of Aboitiz Equity Ventures (“AEV”) and shall only be used for the purpose intended herein and may not be used, published or redistributed without the prior written consent of A
Slide 3: Review of Business Units
Review of Business Units ● Power ● Financial Services ● Food ● Land ● Infrastructure ● AEV Financials ● Q&A 3
Slide 4: UnionBank FY2022 net income at P12.7 billion
UnionBank FY2022 net income at P12.7 billion Recurring Revenues Net Net Income Income • Strong growth in recurring revenues due to: (in PHP Bn) Net Interest Income Fees & Other Income (in (in PHP Bn) PHP Bn) o 5-month contribution of the acquired Citi 12.6 12.7 consumer business 52.3 1% o Higher pro
Slide 5: Net interest income up on higher margins and earning assets growth
Net interest income up on higher margins and earning assets growth Net Interest Income Net Interest Margin Earning Assets (in (in PHP Bn) PHP Bn) (ADBin (ADB inPHP PHPBn) Bn) 7.00% Yield NIM Cost 7.00% 1200 90% 82% 84% 38.9 80% 6.00% 6.00% 27bps 1000 70% 30% 782 29.8 5.00% 5.00% 800 60% 23% 634 19%5
Slide 6: Consumer loans lead portfolio growth with strong post-pandemic recovery
Consumer loans lead portfolio growth with strong post-pandemic recovery Current Loan Portfolio (in PHP Bn) Dec-21 Dec-22 Variance Growth (OS (OS in in PHP Bn) PHP Bn) Corporate 118 131 13 11% 448 Commercial 77 83 6 8% Middle Market 70 74 4 6% 45% 160 +152% 310 SME 7 9 2 32% 64 Retail (Parent) 64 160
Slide 7: Cash management and retail customer growth drive record CASA growth
Cash management and retail customer growth drive record CASA growth Total Deposits CASA Deposits CASA Deposits Digital Account Opening (ADB in PHP Bn) (ADB in (ADB in PHP PHP Bn) Bn) DAO Accounts & Digital Accounts UnionBank Subsidiaries 500 70% ~4M 450 58% ~4x Total Digital 621 60% Accounts 400 54%
Slide 8: Fees from customer growth and digital transactions boost non-interest income
Fees from customer growth and digital transactions boost non-interest income Non-Interest Income Non-Interest Income, Net of Trading (in PHP Bn) (in PHP Bn) Service Charges, Fees & Comm Other Income Securities Trading Gains Service Charges, Fees & Comm Other Income 15.3 13.4 13.3 13% 8.7 6.6 102% 6.
Slide 9: Core OPEX growth remains manageable
Core OPEX growth remains manageable Operating Expenses (in PHP Bn) FY2021 FY2022 Growth (in PHP Bn) 31.5 Total Opex 24.3 31.5 30% One-off Items 0.5 - 30% 24.3 Integration of New Businesses - 5.4 Net of Adjustments 23.8 26.1 10% Manpower 7.1 7.7 8% Controllable 8.3 8.8 5% Non-Controllable 3.3 3.3 -1%
Slide 10: Capital ratios provide room for growth
Capital ratios provide room for growth CAR CAR CET1 CET1 18.4% 16.3% 15.4% 13.7% 13.0% 11.3% 10% regulatory 8.5% minimum regulatory minimum Dec-21 Dec-22 Estimate Post-SRO Dec-21 Dec-22 Estimate Post-SRO
Slide 11: UnionBank fortifies consumer banking business with 3 pillars
UnionBank fortifies consumer banking business with 3 pillars 6 months Built from scratch P5.7b Digital Personal Loans UnionDigital commercial launch Acquisition of Citi consumer banking 3 Profitable P98.1b P68.5b P67.1b 89% Business Lines Total Assets Loans Deposits CASA Ratio 1. Teachers’ Loans 2.
Slide 12: 2023 Outlook – Further opening of the economy, rising inflation, and interest rate impact
2023 Outlook – Further opening of the economy, rising inflation, and interest rate impact to core banking business 2023 Highlights and Outlook Key Takeaways ▪ Interest cap on credit card transactions raised to ➢ A solid recurring income base is the Bank’s main 3% per month driver of profitability. ▪
Union Bank of the Philippines — FY2022 Earnings Presentation on 6ix