UnionBank delivers 167% Q1 earnings growth
Union Bank of the Philippines posted a net income of P3.8 billion in the first quarter, surging 167 percent on the back of strong core income.
The Aboitiz-led bank told the exchange on Monday that the result sustained the earnings momentum seen in the second half of 2025, even as market volatility linked to the Iran conflict triggered some trading losses.
Quarter on quarter, net income grew by 8.7 percent, putting the bank on track toward improved profitability driven by recurring income streams.
Net revenues reached P21.7 billion, up 11.8 percent year on year, supported by solid performance across core business segments.
UnionBank’s customer base expanded by 7.6 percent to 18.9 million, providing a broader platform for lending, cross-selling and upselling activities.
Net interest income climbed to P16.8 billion, driven by loan growth. Consumer lending, which accounted for 60 percent of the loan book, remained robust, particularly in unsecured products.
Unsecured consumer loans grew 19.2 percent to P153.1 billion, while institutional loans increased 11.5 percent to P223.7 billion, reflecting balanced expansion across segments.
Net interest margin widened by 34 basis points to 6.7 percent, supported by growth in current and savings accounts, which rose 7.8 percent.
Fee income remained stable. Fee income-to-assets ratio stood at 1.3 percent, more than twice the industry average, driven by higher digital transaction volumes and contributions from wealth management and bancassurance.
Credit costs declined by 17.9 percent to P4.5 billion and improved 19.1 percent quarter on quarter, signaling improving asset quality as loan portfolios continued to mature.
The bank said that asset quality strengthened further as legacy credit exposures had been addressed in 2025 and risk controls were enhanced across key subsidiaries.
“Recent geopolitical developments introduced potential risks. In response, we took proactive measures to reinforce our portfolio and enhance credit risk management,” Unionbank said.
