UnionBank's profits surge 167% in Q1 2026 on revenue growth
UnionBank of the Philippines posted a net income of ₱3.8 billion in the first quarter of 2026, up 167 percent from a year earlier, sustaining the earnings momentum it built in the second half of 2025 despite trading losses tied to market volatility from the Iran conflict.
Quarter-on-quarter, net income grew 8.7 percent, signaling continued progress toward stronger profitability driven by core recurring income.
Net revenues rose 11.8 percent year on year to ₱21.7 billion, supported by solid core business performance. Total customers reached 18.9 million, up 7.6 percent, expanding the bank's base for lending, cross-selling, and upselling.
Net interest income climbed to ₱16.8 billion as loan growth remained strong. Consumer lending, which accounted for 60 percent of UnionBank's total loan portfolio, posted solid gains, with unsecured products rising 19.2 percent to ₱153.1 billion. Institutional loans also expanded 11.5 percent to ₱223.7 billion.
Net interest margin widened by 34 basis points to 6.7 percent, supported by a 7.8 percent increase in low-cost current and savings account (CASA) deposits, driven by deeper transaction banking relationships established in 2025.
Fee income stayed stable, with the fee income-to-assets ratio at 1.3 percent, more than double the industry average. The bank said higher digital transaction volumes, along with stronger wealth management and bancassurance contributions, continued to support fee growth.
Credit costs fell 17.9 percent year on year to ₱4.5 billion, up 19.1 percent from the previous quarter. Asset quality strengthened as portfolios matured, particularly in the unsecured segment, while subsidiaries improved through lower credit costs, legacy exposure cleanups, and tighter risk controls.
"We are carrying over strong momentum, building on the actions we took in 2025 to strengthen our balance sheet and lay the foundation for sustainable growth," UnionBank Chief Financial Officer Manuel R. Lozano said.
He said the bank remains focused on protecting earnings and managing risks proactively amid geopolitical uncertainties and heightened market volatility.
