UnionBank to integrate UnionDigital, UBX amid 53% profit surge

Union Bank of the Philippines will integrate its digital banking subsidiary, UnionDigital Bank, and fintech unit UBX into the parent bank, as it seeks to streamline operations and strengthen its digital banking business following a 53 percent jump in nine-month net income to P9.9 billion.

In a Friday disclosure to the local bourse, the bank said its board approved the planned integration, which remains subject to approval by the Bangko Sentral ng Pilipinas (BSP) and other regulatory authorities.

The move is part of UnionBank’s strategy to focus on its core businesses, improve operational efficiency and strengthen its next-generation banking services.

“By integrating UnionDigital and UBX with UnionBank, we are strengthening our digital proposition, creating greater efficiencies, and accelerating our ability to serve more Filipinos at scale. Customers will continue to enjoy a digital-first banking experience while gaining access to the broader products, digital capabilities, and financial solutions that UnionBank provides,” UnionBank President and CEO Ana Aboitiz Delgado said.

“During the transition process, we are committed to ensure the least amount of disruption for our customers,” Delgado added.

UnionDigital customers can continue using their accounts, deposits, loans, mobile app and other services without interruption while preparations for the integration are underway. UnionBank added that customers of both UnionDigital and UBX would receive updates throughout the transition and advance notice of any changes.

The planned integration comes as UnionBank reported net income of P9.9 billion in the first nine months of 2026, up 53 percent from the same period last year. The group also sustained its performance quarter on quarter.

Net revenues rose 8 percent year on year to P65.5 billion, driven by wider margins and income from everyday banking transactions. Its retail customer base exceeded 19.5 million.

Consumer loans accounted for 62 percent of the bank’s total loan portfolio, nearly three times the industry average.

Net interest income grew 9 percent to P51.9 billion, supported by a 34-basis-point increase in net interest margin to 6.9 percent, which the bank described as among the industry’s highest. The improvement was largely attributed to a 5 percent year-on-year increase in current and savings account deposits.

Operating expenses reached P37.4 billion at the end of the third quarter, growing more slowly than revenues as the bank managed costs and improved processes.

“Our first-nine-month performance gives us momentum to deliver a better full-year result than last year, even under more difficult market conditions. We are proactively building our reserves to strengthen our balance sheet and support growth amid increasing credit pressures,” Chief Financial Officer Manuel R. Lozano said.

“Alongside this, we continue to align our organizational capabilities, optimize capital deployment, and rationalize businesses where we believe resources can better create sustainable long-term value,” he added.