UnionBanCal’s Profit Climbs 16%

UnionBanCal Corp. reported a 16% jump in first-quarter profit, spurred by a growth in low-cost checking and passbook deposits and an increase in deposit fees and insurance commissions.

The San Francisco-based parent of Union Bank of California earned $157.5 million, or $1.05 a share, compared with $135.5 million, or 89 cents, during the first quarter of 2003. Revenue rose 6% to $612.4 million, while nonperforming assets, a key indicator of loan quality, fell to 0.57% of total assets from 0.96% a year earlier.

The results easily beat analysts’ estimates, which had averaged 98 cents a share. UnionBanCal’s stock rose $1.71 to $52.19 on the NYSE.