UnionBank profit surges 167% in Q1, hits P3.8B

MANILA — UnionBank of the Philippines reported a net income of P3.8 billion in the first quarter of 2026, a 167 percent increase from a year earlier, sustaining the earnings momentum that began in the second half of 2025.

Quarter-on-quarter, net income rose 8.7 percent, underscoring the bank’s path toward improved profitability driven by recurring income.

Net revenues climbed 11.8 percent year-on-year to P21.7 billion, supported by strong loan growth and expanding customer base, which reached 18.9 million.

Consumer lending accounted for 60 percent of total loans, with unsecured products growing 19.2 percent to P153.1 billion.

Institutional loans also expanded 11.5 percent to P223.7 billion.

Net interest margin rose 34 basis points to 6.7 percent, aided by a 7.8 percent increase in low-cost deposits.

Fee income remained stable at a ratio of 1.3 percent of assets, more than double the industry average, driven by digital transactions, wealth management, and bancassurance.

Credit costs fell 17.9 percent year-on-year to P4.5 billion, while asset quality improved across portfolios.

Chief Financial Officer Manuel R. Lozano said the bank remains focused on protecting earnings amid market volatility linked to geopolitical tensions.

“We are strongly positioned in terms of capital and liquidity, and we remain focused on protecting earnings to maintain our good performance despite heightened market volatility,” Lozano said during the annual stockholders’ meeting Friday.