UnionBank nets P9.94 billion in 2025

UNION BANK of the Philippines (UnionBank) saw its net income drop by 16.67% in 2025 due to one-time costs at the subsidiary level that were partly offset strong revenues from the parent.

The bank’s attributable net income went down to P9.94 billion last year from P11.93 billion in 2024, it said in a disclosure to the stock exchange on Monday.

This translated to a return on average capital funds of 5% and a return on average resources of 0.9%.

UnionBank noted that its earnings for the second half surged by 108% from the first semester.

“Performance was driven primarily by the parent bank, including the acquired Citi consumer business, which continued to gain momentum during the year. Record topline revenues at the parent bank helped offset one-time costs, largely booked at the subsidiary level, as the bank took decisive actions to clean up and strengthen its balance sheet and position it for future growth,” it said.

“In 2025, we took deliberate steps to strengthen our balance sheet and lay the foundation for profitable, sustainable growth. 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 (net interest margin), supported by an expanding customer base and a growing stream of recurring revenues,” UnionBank President and Chief Executive Officer Ana Maria Aboitiz-Delgado said. “As we move into 2026, our focus remains on disciplined growth, customer‑centric innovation, and delivering long‑term value for our shareholders.”

The bank’s net revenues stood at P83.2 billion in 2025.

“This growth was supported by an expanding customer franchise, with total customers rising to 18.6 million — up 9.7% year on year.”

UnionBank net interest income increased by 10.72% to P64.25 billion in 2025 from P58.03 billion the prior year, as interest income inched up by 0.74% to P84.36 billion while interest expense dropped by 21.78% to P20.11 billion from P25.71 billion.

As a result, net interest margin was at 6.4%, up from 6% in 2024.

Meanwhile, other income dropped by 4.28% to P18.98 billion from P19.83 billion amid lower trading gains and miscellaneous income. But fee income remained strong, with its fee income-to-assets ratio at 1.3%, more than twice the industry average, UnionBank said.

“Fee growth was driven by higher digital transaction volumes, including bills payments, funds transfers, interchange, and other card-related fees across the bank’s larger and more engaged customer base.”

Total operating income was at P62.07 billion, up from P59.95 billion in the prior year.

Meanwhile, the bank’s other expenses increased by 8.15% to P47.87 billion from P44.27 billion.

“Excluding one-time items, total cost growth would have been at 5%. This reflects the bank’s disciplined efforts to drive cost efficiency and realize the benefits of the bank’s digitization initiatives,” UnionBank said.

The bank set aside credit loss provisions amounting to P21.16 billion in 2025, up by 18.14% from P17.91 billion in 2024.

UnionBank’s net loans and receivables stood at P537.68 billion last year, rising from P522.66 billion in 2024.

“The parent bank’s unsecured consumer loans grew by 18% to P150.8 billion, driven by digital acquisition and cross-selling initiatives. Consumer loans accounted for 61% of the bank’s total loan portfolio, well-diversified across credit cards, mortgage loans, personal and salary loans, and vehicle loans.”

Its nonperforming loan ratio declined by 37 basis points to 6.8%, with provision coverage increasing to 70.8% from 58.2%. It said that its unsecured loans are “more than fully covered.”

“Credit costs rose by 18% year on year to P21.2 billion; however, asset quality indicators improved over the course of the year,” UnionBank said.

“Transaction banking volumes also increased during the year, contributing to a 12% year-on-year growth in low-cost CASA (current account, savings account) deposits. This improvement in funding mix helped reduce overall funding costs and supported margin expansion.”

Total deposits increased by 15.4% to P267.019 billion at end-2025 from P231.378 billion in the prior year.

UnionBank’s resources expanded to P1.16 trillion in 2025 from P1.145 trillion in 2024.

Total capital was at P202.06 billion, up from P195.21 billion in the prior year.

“Capital ratios remain well above regulatory limits, providing sufficient buffer to support future growth, with common equity Tier 1 ratio at 15.03% and capital adequacy ratio at 15.86%.”

UnionBank’s shares gained five centavos or 0.19% to close at P26.70 each on Monday. — A.M.C. Sy