UnionBank earns P10B as customer base hits 18.6M

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.

Major growth driver

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 rose 12 percent as transaction banking volumes increased, helping lower funding costs and improve profitability.

Net interest income

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.