UnionBank of the Philippines reported a net income of ₱3.8 billion for the first quarter of 2026, marking a 167% surge from the same period last year. The bank sustained the earnings momentum built in the second half of 2025, despite trading losses linked to market volatility stemming from the Iran conflict.
Quarterly Performance Highlights
On a quarter-on-quarter basis, net income grew by 8.7%, indicating continued progress toward stronger profitability driven by core recurring income. Net revenues rose 11.8% year-on-year to ₱21.7 billion, supported by solid core business performance. Total customers reached 18.9 million, up 7.6%, expanding the bank’s base for lending, cross-selling, and upselling.
Loan Growth and Interest Income
Net interest income climbed to ₱16.8 billion as loan growth remained robust. Consumer lending, which accounted for 60% of UnionBank’s total loan portfolio, posted solid gains. Unsecured products rose 19.2% to ₱153.1 billion, while institutional loans expanded 11.5% to ₱223.7 billion. The net interest margin widened by 34 basis points to 6.7%, supported by a 7.8% increase in low-cost current and savings account (CASA) deposits, driven by deeper transaction banking relationships established in 2025.
Fee Income and Credit Costs
Fee income remained stable, with the fee income-to-assets ratio at 1.3%, more than double the industry average. The bank attributed this to higher digital transaction volumes, along with stronger wealth management and bancassurance contributions. Credit costs fell 17.9% year-on-year to ₱4.5 billion, though they rose 19.1% from the previous quarter. Asset quality strengthened as portfolios matured, particularly in the unsecured segment, while subsidiaries improved through lower credit costs, legacy exposure cleanups, and tighter risk controls.
Management Commentary
“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,” said UnionBank Chief Financial Officer Manuel R. Lozano. He emphasized that the bank remains focused on protecting earnings and managing risks proactively amid geopolitical uncertainties and heightened market volatility.
