Union Bank of the Philippines (UnionBank) reported a net income of P3.8 billion for the first quarter, a remarkable 167% increase year-on-year, even as the bank faced trading losses tied to the Middle East conflict.
On a quarter-on-quarter basis, earnings grew 8.7%, maintaining the momentum from the second half of 2025. The Aboitiz-led lender attributed the strong performance to core business growth and an expanding customer base.
Total revenues climbed 11.8% to P21.7 billion, driven by higher net interest income and fee-based earnings. Customer numbers reached 18.9 million, up 7.6% from a year ago, providing a broader platform for lending and cross-selling.
Net interest income rose to P16.8 billion, supported by robust loan growth in both consumer and institutional segments. Consumer loans, which make up 60% of total loans, remained strong, while institutional lending also expanded. The net interest margin improved to 6.7%, boosted by a growing base of low-cost current and savings accounts.
Credit costs fell 17.9% to P4.5 billion, reflecting better asset quality and stricter risk controls. Despite the trading losses from geopolitical volatility, UnionBank said it remains focused on protecting earnings and navigating risks while sustaining profitability and growth.