Union Bank of the Philippines (Unionbank), the banking arm of the Aboitiz conglomerate, has outlined plans to expand its loan portfolio for small-scale and medium-sized enterprises (SMEs) by 30 percent in 2024, aiming for a target of P16 billion by the end of 2023, as revealed by Business Banking Head Jose Paolo R. Soliman.
The current loan exposure for SMEs, excluding the informal sector, stands at P14 billion, with a utilization rate of 65 percent to 70 percent and an impressive 90 percent repayment rate, showcasing responsible payment behavior among SME clients.
Unionbank’s ambitious goal is to reach one million customers by 2030, with a disclosed customer base exceeding 13 million for the first nine months of the year and a notable 48 percent increase in net revenues.
The bank attributes this growth to a 34 percent surge in net interest income, primarily fueled by an 18 percent increase in the loan portfolio, with consumer loans experiencing a faster 22 percent year-on-year growth.
Unionbank’s industry-leading consumer-to-total loans proportion of 56 percent contributes to an above-industry net interest margin of 5.3 percent.
As part of its commitment to supporting SMEs, Unionbank unveiled the “UB Negosyante” solution during a briefing in Mandaluyong City.
Described as a “powered-up” tool, the app aims to address various challenges faced by SMEs, providing a streamlined user experience to tackle pain points related to collection, reconciliation, disbursement, and more.
Soliman emphasized the bank’s dedication to assisting SMEs in overcoming obstacles and highlighted the potential for achieving the ambitious customer target ahead of schedule.