Union Bank Of The Philippines · PSE:UBP

Union Bank Of The Philippines — FY2024 Earnings Presentation

29 slides from Union Bank Of The Philippines's earnings presentation, Mar 14, 2025

  1. Slide 1: UnionBank Company Presentation

    UnionBank Company Presentation March 14, 2025 Strictly Private & Confidential

  2. Slide 2: Company Disclaimer

    Strictly private and confidential Company Disclaimer You must read the following before continuing. The following applies to the information following this page, the oral presentation of such information at the meeting you are attending, the Q&A session and other materials which may be distributed a

  3. Slide 3: Market Updates and Outlook

    UnionBank Market Updates and Outlook

  4. Slide 4: Policy expectations consolidating at 1-3 cuts; Volatility looms

    Policy expectations consolidating at 1-3 cuts; Volatility looms ➢ Post-election market action volatility saw US yields and policy expectations move higher ➢ Focus has since shifted to slowing down of economy ➢ Trump: US economy faces “period of transition” ➢ Bessent: US economy needs “detox” from pu

  5. Slide 5: Market Expecting 3 cuts vs. Fed Dots at 2

    Market Expecting 3 cuts vs. Fed Dots at 2 Futures implied Dots

  6. Slide 6: Recent Range has been for 1-3 Cuts for 2025

    Recent Range has been for 1-3 Cuts for 2025 6

  7. Slide 7: USTs around Post-Election Lows

    USTs around Post-Election Lows

  8. Slide 8: USD RoPs offer decent pickup against O/N and UST curve

    USD RoPs offer decent pickup against O/N and UST curve

  9. Slide 9: BSP bucks expectations in Feb meeting, holds at 5.75%

    BSP bucks expectations in Feb meeting, holds at 5.75% ➢ BSP surprised markets by keeping rates steady at 5.75% ➢ BSP Governor Remolona said the BSP needs time to recalibrate its models amid uncertainty in the world economy, particularly in trade policies ➢ The Monetary Board deemed it prudent to awa

  10. Slide 10: GS curve drifting higher to start the year

    GS curve drifting higher to start the year

  11. Slide 11: BVAL10 vs. USGG10

    BVAL10 vs. USGG10 _ Hi: 7.0290. | Last Price seseeeeeeeeseeeetsntnntn etna fn tneeee seta core OWT 5 O4AZ = BVIORPGB BVLI Index 6.1400 | = USGG10YR Index a sg” 7 LN " : pa a PNR i alias i oy = (tft TT haeatig Seated OO ho sass OOO ig nen Me san isspsnsssnasiotae MOIS © BV1ORPGB BVLI Index - USGGIOYR

  12. Slide 12: BTr Auctions

    BTr Auctions Light borrowing schedule in 4Q 2024

  13. Slide 13: Headline CPI slid in February at 2.1%

    Headline CPI slid in February at 2.1%; Previous 2.9%, Expected 2.6% 2.4% 2.1%

  14. Slide 14: Relief in food inflation through rice in March; Base effects turn in 2Q 2025

    Relief in food inflation through rice in March; Base effects turn in 2Q 2025 • Executive Order 62, which lowered the rice tariffs to 15% took effect in July 2024

  15. Slide 15: USD/PHP breaks lower after US tariffs initially weakens DXY

    USD/PHP breaks lower after US tariffs initially weakens DXY 59.00

  16. Slide 16: FY-24 Financial Performance

    FY-24 Financial Performance

  17. Slide 17: Strong growth in customers & revenues

    Strictly private and confidential Strong growth in customers & revenues Customer Growth (in #, Mn) Net Interest Margin 17.3 6.0% 5.5% 13.9 4.5% 4.6% 4.8% 11.8 4.3% 3.7% Industry 8.9 7.1 4.7 49 bps 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Net Revenues (in PHP, Bn) Net Revenues (net

  18. Slide 18: UnionBank FY2024 net income at P12.0Bn

    Strictly private and confidential UnionBank FY2024 net income at P12.0Bn UnionBank’s retail business remains strong, driving the group’s topline revenues. The parent bank’s net income is higher year-on-year with better net interest margins (NIMs), higher proportion of consumer business, and increase

  19. Slide 19: Net interest income up 12% mainly driven by wider margins

    Strictly private and confidential Net interest income up 12% mainly driven by wider margins Net Interest Income (in PHP Bn) Net Interest Margin YoY 58.0 Cost NIM Yield 8.3% 8.5% 8.5% 8.6% 8.6% 33bps 52.0 5% YoY 5.5% 5.7% 5.7% 5.9% 6.0% 49bps 2.8% 2.8% 2.8% 2.8% 2.6% 16bps 2% QoQ 12% 4Q23 1Q24 2Q24 3

  20. Slide 20: Loan growth driven by consumer loans

    Strictly private and confidential Loan growth driven by consumer loans Gross Loans (OSB, in PHP Bn) Loan Mix Industry’s Consumer Loans ~ 21% Based on Q3-24 BSP Data Institutional Retail (Parent) CSB, UD & Other Subs YoY 523 524 519 528 527 1% 21%, Mortgage 39%, Institutional 34%, 32%, Salary 115 117

  21. Slide 21: Steady growth in CASA

    Strictly private and confidential Steady growth in CASA Total Deposits (Consolidated) CASA Deposits (Consolidated) (OSB, in PHP Bn) (OSB, in PHP Bn) CASA High-Cost Share of CASA to Total Deposits YoY 713 800 80% 692 5% 62% 64% 64% 66% 666 653 676 60% 700 60% 4% YoY 40% 283 261 229 600 238 233 19% 7%

  22. Slide 22: Parent bank customer transactions driving fee income

    Strictly private and confidential Parent bank customer transactions driving fee income Non-Interest Income YTD Fees (in PHP Bn) (in PHP Bn) Fees Trading Income YoY FY2023 FY2024 21.5 14% 1.5 67% 18.8 0.9 96% YoY 22% QoQ 20.0 12% 17.9 6.4 4.9 4.9 5.3 0.2 0.1 3.3 1.3 0.1 6.5 4.7 4.8 4.0 3.2 -0.0 4Q23

  23. Slide 23: OPEX mainly driven by volume growth

    Strictly private and confidential OPEX mainly driven by volume growth Operating Expenses (in PHP Bn) Cost-to-Income Ratio Core OPEX Integration and One-offs Base Cost-to-Income Ratio (-) Integration and One-offs YoY 44.9 44.3 1% 63% 1.3 73% 4.9 60% 7% 58% 57% 1% YoY 7% 56% 4% 2% 1% QoQ 2% 42.9 7% 40

  24. Slide 24: Credit cost temporarily affected by challenges in UD

    Strictly private and confidential Credit cost temporarily affected by challenges in UD Credit Cost Loan Mix Parent & Other Subs UD 22%, Mortgage 2%, Salary 104 bps Loans 3.7% 39%, Institutional 35%, 0.9% 61%, Cards 42%, Consumer Others 2.7% 0.4% 2.8% 2.3% FY23 FY24 Source: Q3-2024 BSP Data

  25. Slide 25: NPL ratio is reflective of our loan mix

    Strictly private and confidential NPL ratio is reflective of our loan mix NPL Ratio NPL Ratio (Consumer) 6.2% Parent Consumer 50 bps Vs Q3-24 Industry NPL Ratio NPL Cover NPL Cover (Consumer) 69% Parent Consumer 11% Vs Q3-24 Industry Coverage Ratio Note: Industry N PL R atios are based on Q3-24 data

  26. Slide 26: Sufficient capital ratios to support growth

    Strictly private and confidential Sufficient capital ratios to support growth Capital Adequacy Ratio Group (CAR) Common Equity Tier 1 Capital Ratio Group (CET1) Common Equity Tier 1 Capital Ratio Parent (CET1)

  27. Slide 27: Operational Milestones for 2024

    Strictly private and confidential Operational Milestones for 2024 Citi Consumer Business Integration Digital Enhancements ~10x More per month New Card Acquisition ~13x Bigger ~11x Higher CC & PL Portfolio Size Wealth& PB AUM * All Versus Pre-pandemic Data Strategic Partnerships SBI X UBP ATRAM X UBI

  28. Slide 28: Summary

    Strictly private and confidential Summary Key Takeaways Outlook In FY 2024 alone, the bank generated a net income of Improvement in topline and net income growth should PHP 12.Bn, up by 31% YoY. This is on the back of all- continue as we realize the synergies brought about by time high topline reven

  29. Slide 29: UnionBank

    UnionBank Company Presentation For comments and queries, contact us via: investorrelations@unionbankph.com Strictly Private & Confidential

Union Bank of the Philippines — FY2024 Earnings Presentation on 6ix