As higher costs drag bottom line, UnionBank vows to boost revenues
Union Bank of the Philippines is confident in improving its profitability this year, banking on strong top-line growth to offset higher costs that ultimately dragged earnings in the first semester.
The Aboitiz-led bank disclosed to the stock exchange on Monday that its profit in the January to June period had tumbled by 35 percent to P3.3 billion.
This was due to higher costs associated with improving its operational and financial resiliency, UnionBank said in its filing.
At the same time, its top line climbed by 9.2 percent to P39.7 billion on the back of higher net interest income.
The latter increased mostly due to growth in UnionBank’s credit card and personal loan portfolio.
“Our top line has consistently shown an encouraging trend, and with lower costs ahead, we anticipate improved net income in the coming months,” UnionBank president and CEO Ana Aboitiz Delgado said in a statement.
As of end-June, UnionBank’s retail customer base reached 18 million, resulting in a 17.1-percent increase in transaction volumes.
“As we continue our efforts to grow our customer base, we are also ensuring we enhance operational resilience to be able to deliver our desired customer experience,” Delgado added.
Fund raising
Last month, UnionBank raised P16 billion from its dual-tranche bond offer meant to support its expansion plans amid a monetary policy easing cycle.
The bank raised P9.25 billion from its 1.5-year Series H bonds at 5.88 percent per annum and another P6.75 billion from its three-year Series I bonds at a rate of 6.02 percent.
The country’s 10th largest bank in terms of assets, which ended at P1.14 trillion in the first semester, saw strong demand from institutional investors. This resulted in both tranches exceeding their base targets of P5 billion each.
UnionBank’s notes issuance is part of its upsized P100-billion bond program that was approved in 2019, or when it had an initial size of P39 billion. This had been increased to P50 billion in October 2023 before it was doubled to P100 billion in May 2025.
Apart from expansion, proceeds will be used to extend term liabilities, expand funding base and other general corporate purposes.
