UnionBank of the Philippines reported net income of P602.49 million in the first quarter of 2008.

While lower than the P1.63 billion net income last year which was boosted by exceptional trading gains, increased lending business resulting from more aggressive credit positioning raised net interest income by 21.64 percent to P1.25 billion and efficient operational management reduced operating costs by 7.82 percent to P1.21 billion.

Net loan portfolio expanded by 18.07 percent to P46.90 billion on the back of solid expansion in corporate, commercial and consumer finance business. Mr. Justo A. Ortiz, Chairman and CEO of UnionBank said,

The 21.64 percent expansion in net interest income was mainly attributable to the 6.94 percent growth in interest income from lending and 37.57 percent rise in interest income from securities, on the one hand, and to 35.66 percent drop in interest expense on deposits and bills payable due to the reduction in deposit cost and funding requirements, on the other hand.

Total operating income amounted to P1.91 billion in the first quarter of 2008, 39.10 percent lower than the P3.14 billion for the same period last year reflecting UnionBank’s deliberate strategy to mitigate the downside implications of negative market environment through more calibrated engagement in the capital market and the base effect arising from one-off gains from non-recurring transactions in the previous year.