Union Bank of the Philippines (UnionBank) closed 2025 with a net income of P10 billion as earnings rebounded strongly in the second half of the year, more than doubling from the first six months as the bank continued integrating its Citi consumer business and strengthening its balance sheet.

In a Monday disclosure to the Philippine Stock Exchange, the bank said the second half of 2025 earnings increased 108 percent compared to the first half. Total revenues climbed to P83.2 billion, reflecting steady expansion in UnionBank’s core lending and transaction banking businesses. The bank’s customer base also grew to 18.6 million, up 9.7 percent year-on-year, underscoring the continued traction of its digital banking strategy.

UnionBank reported consumer lending remained a major driver of its 2025 growth. Unsecured consumer loans expanded 18 percent to P150.8 billion, supported by digital acquisition channels and cross-selling initiatives. Consumer loans accounted for 61 percent of the bank’s total portfolio, diversified across credit cards, mortgages, salary loans, personal loans, and auto financing.

Deposit growth also supported margins. Low-cost current and savings accounts (CASA) rose 12 percent as transaction banking volumes increased, helping lower funding costs and improve profitability.

Net interest income reached P64.2 billion, while net interest margin widened by 46 basis points to 6.4 percent. Fee-based income remained strong, driven by rising digital transactions such as bills payments, transfers, interchange income, and card-related services. The bank’s fee income-to-assets ratio stood at 1.3 percent—more than double the industry average.

Operating expenses increased 8 percent to P47.9 billion, although cost growth would have been limited to 5 percent excluding one-time items. Management said the results reflect continued efforts to improve efficiency while investing in digital capabilities.

Credit costs rose 18 percent to P21.2 billion, but asset quality improved over the year. The non-performing loan ratio declined to 6.8 percent, while provision coverage rose to 70.8 percent, with unsecured loans more than fully covered.

UnionBank also maintained strong capital buffers, with its Common Equity Tier 1 ratio at 15.03 percent and capital adequacy ratio at 15.86 percent—well above regulatory requirements and providing room for future growth.

“In 2025, we took deliberate steps to strengthen our balance sheet and lay the foundation for profitable, sustainable growth,” said UnionBank president and chief executive officer Ana Aboitiz Delgado. “Building on the strength of our core franchise, we are doubling down on our key competitive advantages in 2026. We expect continued improvement in topline growth and NIM, supported by an expanding customer base and a growing stream of recurring revenues.”

She added that the bank’s focus moving forward will remain on disciplined growth, customer-centric innovation, and delivering long-term value to shareholders.

UnionBank’s growth in recent years has been closely tied to its landmark acquisition of the consumer banking business of Citigroup in the Philippines, which was completed in 2022. The transaction transferred Citi’s credit card, personal loan, wealth management, and retail deposit portfolio to Union Bank of the Philippines, significantly expanding the bank’s presence in the higher-income consumer segment. 

The bank also recently rolled out its Zero-Touch Onboarding program, a fully digital solution designed to streamline the opening of payroll accounts for new employees. The initiative reduces the turnaround time for creating payroll accounts from two weeks to less than 24 hours, with no manual intervention required from a company’s human resources (HR) or finance departments.