UnionBank of the Philippines, the country’s 10th largest lender by assets, said it maintained its strong topline momentum in the first half, reporting total revenues of P39.7 billion, a 9.2 percent increase year-on-year. The growth was largely driven by higher net interest income and an expanded fee-income base, reflecting the bank’s solid performance across key areas.
Net interest income saw a significant rise, supported by a 61-basis point improvement in net interest margin, which reached 6.4 percent in the first half. This growth was fueled by the bank’s high-yielding consumer portfolio, particularly in credit cards and personal loans. The continued acquisition of new customers and cross-selling initiatives played a pivotal role. Additionally, funding costs improved due to a favorable interest rate environment and an increase in low-cost current account/saving account deposits. As a result, UnionBank’s CASA ratio improved to 65.2 percent, highlighting the strength of its transaction banking franchise.
The bank’s retail customer base grew to 18 million at the end of June, contributing to a 17.1 percent year-on-year increase in fee income. Its fees-to-assets ratio stood at 1.3 percent, one of the highest in the industry, showcasing its ability to generate fee-based revenues effectively.
Despite increased credit costs linked to the growth in credit card customers and one-time operational investments,
UnionBank posted a net income of P3.3 billio, down from the P5.1 billion reported for the same period last year.
President and chief executive officer Ana Aboitiz Delgado expressed confidence in the bank’s strategic direction, noting that these initiatives would position UnionBank for more resilient and sustainable growth in the months ahead.
