Union Bank of the Philippines delivered a strong earnings rebound in the first half of 2026, with net income more than doubling as sustained consumer lending, rising fee income and improving asset quality underscored the bank’s recovery strategy.
The bank reported a consolidated net income of P6.9 billion for the January-to-June period, up 113 percent from a year earlier. The parent bank accounted for 96 percent of the group’s earnings, extending the profitability momentum it established in the first quarter.
The improved bottom line came as net revenues rose 9 percent to P43.1 billion, driven by continued expansion in consumer loans, growth in low-cost current and savings account (CASA) deposits, and higher fee-based income.
Consumer lending remained the bank’s primary growth engine, accounting for 61 percent of its total loan portfolio. Gross consumer loans expanded 10 percent, led by credit cards and personal loans, which together grew 18 percent.
The stronger loan book helped lift net interest income by 8 percent to P33.7 billion, while the bank’s net interest margin widened by 40 basis points to 6.9 percent, supported by a 7 percent increase in CASA balances.
Beyond lending, UnionBank also generated stronger earnings from its growing customer franchise. Non-interest income climbed 12 percent to P9.4 billion, fueled by higher card-related fees, wealth management, bancassurance and everyday banking transactions across its 19.3 million customers.
Even as the bank continued to set aside additional reserves to support future loan growth and strengthen its balance sheet, credit costs fell 19 percent to P9.4 billion, reflecting continued improvements in asset quality.
Chief Financial Officer Manuel R. Lozano said the results validate initiatives launched in 2025 to reinforce the balance sheet while sharpening the group’s focus on businesses that generate sustainable returns.
“We continue to build on the actions we began in 2025 to enhance our balance sheet while sharpening our focus on the businesses that drive long-term value for the Group,” Lozano said.
He added that UnionBank will continue simplifying its operations and rationalizing selected businesses to better deploy capital, part of a broader strategy to strengthen its core banking franchise while advancing its ambition to lead next-generation banking in the Philippines.
