Union Bank of the Philippines, the country’s 10th largest lender by asseets, closed 2025 with net income of P10.0 billion, as second half earnings more than doubled, rising 108 percent from the first half. The rebound was driven largely the bank’s lending activity, including the acquired Citi consumer business, which gained traction through the year.
Even so, the sharp fall in first half of 2025 resulted in the full year net profit still lower than the P12 billion UnionBank posted in 2024.
Record topline revenues at the helped cushion one time costs booked mainly at the subsidiary level, as the Bank moved to clean up and fortify its balance sheet for future growth.
Net revenues climbed to P83.2 billion, reflecting the strength of UnionBank’s core businesses and expanding customer base, which grew 9.7 percent year on year to 18.6 million. Unsecured consumer loans rose 18 percent to P150.8 billion, supported by digital acquisition and cross selling initiatives. Consumer loans accounted for 61 percent of the total portfolio, diversified across credit cards, mortgages, personal and salary loans, and auto financing.
Higher transaction banking volumes fueled a 12 percent increase in low cost CASA deposits, improving the funding mix and supporting margin expansion. Net interest income reached P64.2 billion, while net interest margin improved 46 basis points to 6.4 percent. Fee income remained strong, with a fee to assets ratio of 1.3 percent, more than double the industry average, driven by rising digital transaction volumes.
Operating expenses rose 8 percent to P47.9 billion, or 5 percent excluding one time items, reflecting cost discipline and digitization gains. While credit costs increased 18 percent to P21.2 billion, asset quality improved, with the non performing loan ratio easing to 6.8 percent and provision coverage rising to 70.8 percent.
President and CEO Ana Aboitiz Delgado said the Bank is entering 2026 focused on disciplined growth and sustained value creation.
