• Net income P10 billion, down 17 percent from P12 billion in 2024
• Net revenues P83.2 billion as margin widens to 6.4 percent
• Unsecured consumer loans up 18 percent to P150.8 billion
• Credit costs up 18 percent, but non-performing loan ratio down to 6.8 percent
• Capital ratios remain above regulatory minimums
The Aboitiz family-led UnionBank of the Philippines posted P10 billion in net income for 2025, down 17 percent from P12 billion in 2024, as one-off subsidiary charges offset stronger second half momentum.
Earnings in the latter half of the year jumped 108 percent from the first half, reflecting improved traction at the parent bank and the acquired Citi consumer portfolio.
Management’s view
“In 2025, we took deliberate steps to strengthen our balance sheet and lay the foundation for profitable, sustainable growth,” said Ana Aboitiz Delgado, president and CEO of UnionBank.
“As we move into 2026, our focus remains on disciplined growth, customer‑centric innovation, and delivering long‑term value for our shareholders,” she added.
Revenue climb
Net revenues rose to P83.2 billion, underscoring steady core growth. Net interest income reached P64.2 billion, while net interest margin expanded 46 basis points year on year to 6.4 percent, aided by a more favorable funding mix.
Low-cost current and savings account deposits grew 12 percent from a year earlier as transaction banking volumes increased, helping ease funding costs and lift spreads.
Consumer push
Total customers increased 9.7 percent to 18.6 million. Unsecured consumer loans climbed 18 percent to P150.80 billion, accounting for 61 percent of the total loan book.
The portfolio spans credit cards, mortgages, personal and salary loans, and auto loans.
Fee income remained resilient, with the fee income-to-assets ratio at 1.3 percent, more than twice the industry average, driven by higher digital payments and card-related activity.
Costs and asset quality
Operating expenses rose 8 percent to P47.9 billion. Excluding one-time items, cost growth would have been 5 percent, pointing to tighter expense discipline.
Credit costs increased 18 percent to P21.2 billion. Even so, asset quality improved.
The non-performing loan ratio fell 37 basis points year on year to 6.8 percent, while provision coverage strengthened to 70.8 percent from 58.2 percent.
Capital cushion
Capital ratios remained comfortably above regulatory minimums. The common equity tier 1 ratio stood at 15.03 percent and the capital adequacy ratio at 15.86 percent, giving the bank headroom to pursue disciplined growth in 2026.
—Edited by Miguel R. Camus
