UnionBank nets P10B, bracing for future growth
Union Bank of the Philippines saw its net income decline in 2025, reflecting the impact of one-time costs, even as its core businesses continued to expand.
The Aboitiz-led bank told the exchange on Monday it earned P10 billion last year, lower than the P12 billion it had booked in 2024.
The bank said second-half earnings more than doubled from the first six months, driven mainly by the parent bank and the acquired Citi consumer business, which continued to gain momentum.
UnionBank said record revenues helped cushion the impact of one-time charges, mostly recognized at the subsidiary level. This was as it took decisive steps to clean up its books and prepare for future growth.
Ana Aboitiz Delgado, UnionBank president and CEO, said the bank had used 2025 to reinforce its foundation, focusing on sustainable growth and recurring revenues.
“In 2025, we took deliberate steps to strengthen our balance sheet and lay the foundation for profitable, sustainable growth,” Delgado said, adding that the bank expects continued improvement in top-line growth and margins this year.
Despite the lower profit, the bank said its expanding customer franchise, stronger margins and digital-led growth position it for recovery in 2026.
Net revenues in 2025 rose to P83.2 billion, supported by core lending and fee-based businesses.
Its customer base expanded by 9.7 percent to 18.6 million, while consumer loans climbed 18 percent to P150.8 billion.
These consumer loans accounted for 61 percent of the total loan portfolio, spanning credit cards, mortgage, personal, salary and vehicle loans.
UnionBank also saw transaction banking volumes grow, helping boost low-cost current account/savings account deposits by 12 percent and reduce funding costs. This contributed to margin expansion, with net interest income reaching P64.2 billion and net interest margin improving to 6.4 percent.
Fee income was supported by higher digital transactions, such as bills payments, funds transfers and card-related fees.
Meanwhile, operating expenses rose 8 percent to P47.9 billion.
