UNION BANK of the Philippines, Inc. (UnionBank) booked a net income of P3.25 billion in the first half on the back of strong revenues, it said on Monday.
The bank’s revenues rose by 9.2% year on year to P39.7 billion in the period amid higher net interest income and an expanded fee income base, it said in a disclosure to the stock exchange
Its financial statement was unavailable as of press time.
UnionBank said its strong revenue performance as well as “one-time costs aimed at enhancing operational and financial resiliency” helped offset the earnings impact of higher credit costs, which came amid the increase in its new credit card customers.
“As we continue our efforts to grow our customer base, we are also ensuring we enhance operational resilience to be able to deliver our desired customer experience. These strategic moves come with upfront costs booked in 1H 2025. This positions us to better reflect the bank’s true performance moving forward,” UnionBank President and Chief Executive Officer Ana Maria Aboitiz-Delgado said.
“Our topline has consistently shown an encouraging trend, and with lower costs ahead, we anticipate improved net income in the coming months. These efforts position the bank for a more resilient, sustainable, and accelerated trajectory as we enter the next phase of our growth journey,” she added.
UnionBank’s net interest income stood at P31.311 billion in the first semester, with interest income at P41.765 billion and interest expense at P10.454 billion. Its net interest margin increased by 61 basis points to 6.4%.
“This was driven by continued growth in the bank’s high-yielding consumer portfolio — particularly in credit cards and personal loans — underpinned by continuous customer acquisition and cross-sell initiatives,” UnionBank said.
Its net loans and other receivables stood at P519.003 billion at end-June.
On the funding side, deposit liabilities were at P682.554 billion.
“Funding costs also improved amid a declining interest rate environment and an increase in the share of low-cost CASA (current account, savings account) deposits. The bank’s CASA ratio improved to 65.2%, underscoring the strength of its transaction banking franchise,” it said.
Meanwhile, other income was at P8.44 billion.
“UnionBank’s retail customer base reached 18 million as of the first half of 2025, contributing to higher transaction volumes and a 17.1% year-on-year increase in fee income,” it said.
“The bank’s fees-to-assets ratio stood at 1.3%, among the highest in the industry, reflecting its strong ability to generate fee-based revenues relative to its size.”
On the other hand, UnionBank’s operating expenses were at P23.37 billion in the first semester, with provisions for credit losses at P11.55 billion.
The bank’s assets stood at P1.14 trillion as of June, while total capital was at P195.97 billion.
UnionBank’s shares closed at P32 apiece on Monday, dropping by 30 centavos or 0.93%. — A.M.C. Sy
