Union Bank of the Philippines, the country’s 9th largest lender by assets, reported a sharp rebound in earnings for the first quarter, with net income more than doubling to P3.8 billion as core lending and digital-driven revenues offset market volatility.
The strong performance extends momentum from the second half of 2025, with quarter-on-quarter net income rising 8.7 percent despite trading losses linked to geopolitical tensions, including the Iran conflict. The results signal a shift toward more sustainable profitability anchored on recurring income streams.
Net revenues climbed 12 percent to P21.7 billion, supported by steady growth across key business segments. The bank’s customer base expanded to 18.9 million, up 7.6 percent, providing a wider platform for lending, cross-selling, and digital engagement.
Net interest income reached P16.8 billion, driven largely by loan expansion. Consumer lending remained a major growth engine, accounting for 60 percent of the total portfolio, with unsecured loans rising 19 percent to P153.1 billion. Institutional lending also posted solid growth, increasing 11.5 percent to P223.7 billion. Net interest margin improved to 6.7 percent, up 34 basis points, supported by a 7.8 percent rise in low-cost current and savings accounts.
Fee income remained a consistent contributor, with a fee-to-assets ratio of 1.3 percent, more than double the industry average. Growth was fueled by higher digital transaction volumes, alongside stronger contributions from wealth management and bancassurance.
Meanwhile, credit costs declined 17.9 percent year on year to P4.5 billion, reflecting improving asset quality as portfolios mature.
Chief Financial Officer Manuel R. Lozano said the bank is focused on sustaining gains while managing risks from global uncertainties, noting that strong capital and liquidity buffers position UnionBank to navigate continued market volatility.
