UNION BANK of the Philippines’ (UnionBank) net income surged by 167% in the first quarter, backed by the strength of its core businesses. The bank’s profit jumpedUNION BANK of the Philippines’ (UnionBank) net income surged by 167% in the first quarter, backed by the strength of its core businesses. The bank’s profit jumped

UnionBank net income surges to P3.8B

2026/04/28 00:02
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UNION BANK of the Philippines’ (UnionBank) net income surged by 167% in the first quarter, backed by the strength of its core businesses.

The bank’s profit jumped to P3.833 billion in the first three months of the year, it said in a disclosure to the stock exchange on Monday. This was also up by 8.7% from the prior quarter.

“We are carrying over strong momentum, building on the actions we took in 2025 to strengthen our balance sheet and lay the foundation for sustainable growth. First-quarter results provide an early indication that the bank is continuing its path to improved performance,” UnionBank Chief Financial Officer Manuel R. Lozano said.

“However, recent geopolitical developments introduced potential risks. In response, we took proactive measures to reinforce our portfolio and enhance credit risk management. Our immediate focus is to ensure we effectively navigate the impact of recent developments. We are strongly positioned in terms of capital and liquidity, and we remain focused on protecting earnings to maintain our good performance despite the heightened market volatility.”

The bank’s net revenues grew by 11.8% year on year to P21.7 in the first quarter amid the “solid” performance of its core business drivers.

“Total customers rose to 18.9 million, up by 7.6% year on year. This provides a broader base to support lending and to further enable cross-sell and upsell.”

UnionBank’s net interest income stood at P16.76 billion, with interest income at P21.21 billion and interest expense at P4.45 billion.

It said this was supported by continued growth in its loan book. Net loans and other receivables stood at P553.57 billion at end-March.

“Consumer lending, which made up 60% of the bank’s total loan portfolio, remained strong, particularly in unsecured products, which grew 19.2% to P153.1 billion,” UnionBank said.

“Institutional loans also expanded, increasing by 11.5% to P223.7 billion.”

Net interest margin rose by 34 basis points to 6.7%.

This was backed by the 7.8% growth in its current account, savings accounts (CASA), which came amid “the continued deepening of transaction banking relationships established in 2025.”

Deposit liabilities stood at P751.72 billion as of March.

Meanwhile, other income stood at P4.97 billion in the first three months.

“Fee income remained stable with a fee income-to-assets ratio of 1.3%, more than twice the industry average. Growth continues to be driven by higher digital transaction volumes, alongside increased contributions from wealth management and bancassurance,” UnionBank said.

Operating expenses stood at P12.48 billion. Loan loss provisions were at P4.499 billion in the period, down by 17.9% year on year but up by 19.1% from the fourth quarter.

“Asset quality strengthened as portfolios continue to season, particularly in the unsecured segment,” UnionBank said.

Key subsidiaries also demonstrated improvements, supported by lower credit costs after addressing legacy credit exposures in 2025 and further enhancements in risk controls.”

The bank’s total assets were at P1.18 trillion at end-March, while total capital funds stood at P202.096 billion.

UnionBank shares climbed by 20 centavos or 0.81% to finish at P25 each on Monday. — A.M.C. Sy

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