results of operations - Aboitiz

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RESULTS OF OPERATIONS UnionBank’s acquisition of iBank, as well as organic growth, pushed its asset base to π183 billion, an increase of 71%. Deposits almost doubled to π116 billion at the end of 2006. UNIONBANK OF THE PHILIPPINES BANKING 20 ABOITIZ EQUITY VENTURES ANNUAL REPORT 2006
RESULTS OF OPERATIONS BANKING The banking group’s contribution to AEV’s income in 2006 increased by 6.7% to π1.1 billion, representing 28% of the total income contribution from the company’s various business segments. Union Bank of the Philippines (UnionBank) contributed π1.07 billion, a 4% increase from the previous year’s contribution. The bank’s performance was affected by the interim impact of expenses related to the purchase of International Exchange Bank (iBank) and the industry-wide margin compression as interest rates continued to decline. The year 2006 was a milestone year for UnionBank as it moved closer to realizing its Focus 2010 goal when it acquired iBank. On August 28, 2006, the Securities and Exchange Commission (SEC) approved the merger of UnionBank and iBank, with the latter as the absorbed entity and UnionBank as the surviving entity. This merger has made UnionBank the seventh largest private domestic universal bank in the country, with an aggregate resource base of over π183 billion. Both UnionBank and iBank customers can look forward to eventually having access to a broader range of products and services, a total branch network of 186, more distribution channels, and more technology-based solutions. With the integration of iBank, UnionBank’s core earnings - net revenues less trading gains and miscellaneous items - expanded by 36% to π5 billion in 2006. Net interest income went up by 29% to π4.2 billion as the bank's loan portfolio doubled. Service charges, fees and commissions almost doubled to π721 million. UnionBank’s return on average equity was 13.5% while its return on average assets stood at 1.8% in 2006, comparing favorably with the industry average of 11.5% and 1.3%, respectively. The NPL ratio improved further to 5% in 2006 from 7% in 2005. The acquisition of iBank, as well as organic growth, pushed UnionBank’s asset base to π183 billion, an increase of 71%. Deposits almost doubled to π116 billion at the end of 2006. Strong internal capital generation increased capital to π20 billion. On April 27, 2007, UnionBank commenced a primary offering of up to 90 million new shares. This offering is aimed at increasing the capital base of UnionBank by US$ 111 million. The additional funds will be used to expand the bank's balance sheet, increase its lending activities and seize opportunities for future growth. Banking ABOITIZ EQUITY VENTURES ANNUAL REPORT 2006 21
Page 2 and 3: CONTENTS Financial Highlights 2 Rep
Page 4 and 5: FINANCIAL HIGHLIGHTS 06 05 04 Reven
Page 6 and 7: REPORT TO OUR STOCKHOLDERS FROM YOU
Page 8 and 9: We intend to list Aboitiz Power Cor
Page 10 and 11: Market Capitalization (in billion p
Page 12 and 13: RESULTS OF OPERATIONS FROM YOUR CHI
Page 14 and 15: RESULTS OF OPERATIONS VECO extended
Page 16 and 17: RESULTS OF OPERATIONS Subic EnerZon
Page 18 and 19: RESULTS OF OPERATIONS Hedcor, Inc.
Page 20 and 21: RESULTS OF OPERATIONS Luzon Hydro a
Page 24 and 25: RESULTS OF OPERATIONS City Savings
Page 26 and 27: RESULTS OF OPERATIONS ATS has conve
Page 28 and 29: RESULTS OF OPERATIONS The increase
Page 30 and 31: REPORT TO OUR STOCKHOLDERS FROM YOU
Page 32 and 33: REPORT TO OUR STOCKHOLDERS Growth P
Page 34 and 35: SN ABOITIZ POWER, INC. With four ge
Page 36 and 37: HEDCOR, INC. A Hedcor engineer uses
Page 38 and 39: DAVAO LIGHT AND POWER COMPANY Davao
Page 40 and 41: VISAYAN ELECTRIC COMPANY VECO linem
Page 42 and 43: UNIONBANK OF THE PHILIPPINES UnionB
Page 44 and 45: CITY SAVINGS BANK Moving forward, C
Page 46 and 47: PILMICO FOODS CORPORATION Living up
Page 48 and 49: ABOITIZ TRANSPORT SYSTEM The entry
Page 50 and 51: ABOITIZ GROUP FOUNDATION, INC. In 2
Page 52 and 53: CHRISTMAS OUTREACH PROJECT Expressi
Page 54 and 55: ABOITIZ FUTURE LEADERS’ BUSINESS
Page 56 and 57: ABOITIZ EQUITY VENTURES LOCATION OF
Page 58 and 59: CORPORATE OFFICERS Stephen G. Parad
Page 60 and 61: Independent Auditors’ Report The
Page 62 and 63: ABOITIZ EQUITY VENTURES, INC. AND S
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ABOITIZ EQUITY VENTURES, INC. AND S
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