Union Bank of the Philippines (UnionBank), the country’s 10th largest lender by assets, posted a third-quarter net income of P3.2 billion, a 77 percent increase from the previous quarter. This brings the bank’s cumulative net profit to P6.5 billion for the first nine months of 2025.
Net revenues rose to P60.5 billion, up 7.2 percent year-on-year, driven largely by strong growth in the consumer segment. The bank’s unsecured consumer loans climbed 16 percent to P138.5 billion, fueled by targeted digital marketing campaigns and strategic portfolio management. Consumer loans now account for 60 percent of UnionBank’s total loan book — nearly triple the industry average.
Net interest income increased to P47.5 billion, supported by a 51-basis point improvement in net interest margin to 6.4 percent, among the highest in the Philippine banking sector. A 9 percent year-on-year increase in low-cost CASA deposits helped reduce funding costs, while the bank’s fee income-to-assets ratio stood at 1.3 percent, more than double the industry average.
Operating expenses totaled P35.5 billion, reflecting continued investment in customer acquisition, service delivery, client engagement, and operational efficiency — all pillars in expanding both consumer and institutional banking.
Credit costs fell to P4.0 billion in the third quarter, down P2.0 billion quarter-on-quarter, highlighting improving asset quality. With stronger coverage and solid capital ratios, UnionBank said it is well-positioned to support future business growth.
“This quarter’s results keep us on track toward our growth outlook. Stabilized credit costs, improved portfolio quality, and strong topline momentum position UnionBank for continued growth,” said Manuel Lozano, Chief Financial Officer.
