‘We continue to build on the actions we began in 2025 to enhance our balance sheet while sharpening our focus on the businesses that drive long-term value for the Group. Our customer franchise remains strong, asset quality continues to improve, and we are confident that we can continue the positive profitability trajectory.’ — UnionBank chief financial officer Manuel R. Lozano
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Union Bank of the Philippines (UnionBank) more than doubled its net income in the first half of 2026 to P6.9 billion, up 113 percent from a year earlier, driven by continued strength in its core businesses, higher lending and stronger fee income. The parent bank accounted for 96 percent of the group’s profit during the period.
The bank said in a Monday statement that net revenues rose 9 percent year-on-year to P43.1 billion, supported by growth in consumer lending, current and savings account (CASA) deposits and fee-based income.
Net interest income increased 8 percent to P33.7 billion as loan expansion continued, while the bank’s net interest margin improved by 40 basis points to 6.9 percent, backed by a 7 percent increase in CASA balances.
Main growth driver
Consumer lending remained the bank’s main growth driver, accounting for 61 percent of its total loan portfolio. Gross consumer loans expanded 10 percent, led by credit cards and personal loans, which collectively grew 18 percent.
Non-interest income climbed 12 percent to P9.4 billion, driven by higher card-related fees, wealth management, bancassurance and other everyday banking transactions, benefiting from the bank’s customer base of 19.3 million.
The bank continued to build reserves to support loan growth and strengthen its balance sheet following ongoing portfolio reviews.
Despite the higher provisioning, credit costs declined 19 percent year on year to P9.4 billion, reflecting continued improvements in asset quality.
“We continue to build on the actions we began in 2025 to enhance our balance sheet while sharpening our focus on the businesses that drive long-term value for the Group. Our customer franchise remains strong, asset quality continues to improve, and we are confident that we can continue the positive profitability trajectory,” UnionBank chief financial officer Manuel R. Lozano said.
Taking deliberate steps
to simplify the Group
“At the same time, we are taking deliberate steps to simplify the Group and rationalize businesses where we believe resources can be better deployed. These actions are part of UnionBank’s broader strategy to sharpen focus on its core capabilities while continuing its journey to lead next-generation banking in the Philippines,” he added.
