Union Bank 3Q earnings down by 38.81%

UBPUNION BANK OF THE PHILIPPINES, INC (UBP) posted a net income of Php3.67 billion for the first nine months of 2015, or 38.81% lower compared to the Php6.00 billion booked a year ago.

Total interest income for the first nine months of 2015 went up by 5.41% to Php11.90 billion from Php11.29 billion attained in the same period last year. Interest income on loans and other receivables climbed 23.17% to Php8.57 billion, as a result of both higher average loan levels and yields. Interest income on interbank loans receivable increased by 8.10% to Php0.02 billion, as higher average levels offset the decline in yields. On the other hand, interest income from trading and investment securities as well as due from BSP and other banks fell by 17.32% and 40.84%, respectively, to Php2.65 billion and Php0.65 billion on account of decreases in both average levels and yields.

Total interest expense went down by close to a percent to Php3.14 billion this year from Php3.17 billion in the prior year. Interest expense on bills payable and other liabilities surged by 125.28% to Php0.68 billion from the issuance of Basel III-compliant unsecured subordinated notes last November 2014. However, this was offset by the 14.21% reduction in interest expense on deposit liabilities to Php2.46 billion as a result of lower levels of high cost deposits.

The higher interest income and managed cost of funds resulted for the Bank’s net interest income to grow by 7.89% to Php8.76 billion as of September 30, 2015 as against the Php8.12 billion reported in the same period last year.


The above information is an excerpt from the report submitted to PSE. Click here to read more the full disclosure.

DIVIDEND PAYOUTS

Union Bank is consistently giving cash dividends every year for at least 10 years now. Annual dividend yield is at 3.68% base on the last traded price of Php 57.00 and current year cash dividend amount of Php2.10. Dividend payout ratio is at 55.42%.

PRICE FORECAST

The Dividend Observer is doing a simple and quick valuation method, hence price forecast shown in this article must not be taken seriously. Please find the price forecast shown below along with other relevant data you may want to know:

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