UnionBank of the Philippines reported P19.4 billion in revenue for the first quarter, an 8.4 percent year-on-year growth. The bank’s performance continues to be driven by a thriving consumer business, expanding net interest margin, and rising fee-based revenue.
Net income in the January-March quarter, however, fell to P1.4 billion from P2 billion in the year-earlier period as UnionBank faced one-time, tax-related write-offs from a subsidiary and front-loaded non-recurring costs.
Consumer loans now represent 62 percent of the total loan portfolio, nearly three times the industry average. This robust growth is fueled by a diverse strategy, with credit cards, personal loans, and teachers’ loans leading the way. The bank’s retail customer base has expanded to 17.6 million, laying a strong foundation for future growth.
Net interest margin increased by 69 basis points to 6.3 percent, bolstered by higher-margin consumer loans and reduced funding costs. The bank benefitted from continued growth in low-cost deposits and easing monetary conditions. Additionally, fee-based income surged 21.3 percent to P3.7 billion, driven by higher transactions from a larger customer base. The fee-to-assets ratio rose to 1.3 percent, up from 1.1 percent, ranking among the highest in the industry.
Despite the strong revenue growth, UnionBank faced one-time, tax-related write-offs from a subsidiary and front-loaded non-recurring costs. As a result, net income declined year-on-year to P1.4 billion in the first quarter.
Chief financial officer Manuel R. Lozano said the bank’s strong underlying financial drivers. “We continue to see substantial new client acquisitions each month, along with the expansion of both our net interest margin and fee-based income. These factors suggest that our strong revenue trend will persist. When accounting for one-time impacts, our net income would be in line with previous quarters. We are confident that we will surpass our 2024 performance,” he said.
