Union Bank of the Philippines reported a net income of P3.8 billion in the first quarter of 2026, surging 167% year-on-year, driven by robust core income growth. The Aboitiz-led bank attributed the strong performance to sustained earnings momentum from the second half of 2025, despite market volatility tied to the Iran conflict causing some trading losses.
Sequentially, net income rose 8.7%, positioning the bank for improved profitability as recurring income streams continue to expand. Net revenues reached P21.7 billion, up 11.8% year-on-year, supported by solid performance across all core business segments.
UnionBank's customer base grew 7.6% to 18.9 million, providing a broader platform for lending, cross-selling, and upselling activities. Net interest income climbed to P16.8 billion, driven by loan growth. Consumer lending, which now accounts for 60% of the loan book, remained robust, particularly in unsecured products.
Unsecured consumer loans expanded 19.2% to P153.1 billion, while institutional loans increased 11.5% to P223.7 billion, reflecting balanced growth across segments. The net interest margin widened by 34 basis points to 6.7%, supported by a 7.8% rise in current and savings accounts.
Fee income remained stable, with the fee income-to-assets ratio at 1.3%—more than double the industry average—driven by higher digital transaction volumes and contributions from wealth management and bancassurance. Credit costs declined 17.9% to P4.5 billion and improved 19.1% quarter-on-quarter, signaling improving asset quality as loan portfolios matured.
Asset quality strengthened further as legacy credit exposures were addressed in 2025 and risk controls enhanced across key subsidiaries. The bank noted that recent geopolitical developments introduced potential risks, prompting proactive portfolio reinforcement and tighter credit risk management.