Union Bank of the Philippines (UnionBank) reported a P3.2 billion net income in the third quarter of 2025, a 77 percent increase from the previous quarter, bringing its nine-month profit to P6.5 billion.

The bank’s net revenues reached P60.5 billion, up 7.2 percent year-on-year, lifted by the sustained expansion of its consumer lending portfolio. Unsecured consumer loans rose 16 percent to P138.5 billion, supported by targeted digital marketing and portfolio diversification strategies. Consumer loans now account for 60 percent of UnionBank’s total loan book—nearly triple the industry average.

Net interest income climbed to P47.5 billion, driven by a 51-basis-point improvement in net interest margin to 6.4 percent, one of the highest in the banking sector. The gain was attributed to a 9 percent increase in low-cost current and savings account (CASA) deposits, which helped temper funding costs. The bank’s fee income-to-assets ratio also stood at 1.3 percent, more than double the industry benchmark.

Operating expenses totaled P35.5 billion, reflecting continued investments in customer acquisition, service delivery, and digital efficiency to strengthen both consumer and institutional banking operations.

Credit costs dropped to P4.0 billion in the third quarter, down P2.0 billion quarter-on-quarter, signaling improved asset quality. UnionBank said it maintains strong capital ratios and loan coverage, positioning the lender for further growth.

“This quarter’s results keep us on track towards our growth outlook. The Bank will continue to build on the progress made in strengthening operational resiliency and reinforcing the balance sheet,” said UnionBank Chief Financial Officer Manuel Lozano. “Credit costs have stabilized while portfolio quality continues to improve. Combined with strong topline momentum, these developments position UnionBank for a positive growth trajectory in the future.”