The Aboitiz family-led UnionBank of the Philippines posted a strong first quarter, with net income hitting P3.8 billion, up 167 percent from a year earlier and 8.7 percent higher than the previous quarter, signaling a continued earnings recovery.
Net revenues grew 11.8 percent to P21.7 billion, driven by core banking activity.
Net interest income reached P16.8 billion, while net interest margin expanded to 6.7 percent, supported by loan growth and higher low-cost deposits.
Management’s view
“We are carrying over strong momentum, building on the actions we took in 2025 to strengthen our balance sheet and lay the foundation for sustainable growth. First quarter results provide an early indication that the bank is continuing its path to improved performance,” Manuel R. Lozano, chief financial officer, said in a statement on Monday.
“However, recent geopolitical developments introduced potential risks. In response, we took proactive measures to reinforce our portfolio and enhance credit risk management,” he said.
“We are strongly positioned in terms of capital and liquidity, and we remain focused on protecting earnings to maintain our good performance despite the heightened market volatility,” he added.
Loans, customers expand
Consumer loans, which make up 60 percent of the portfolio, rose 19.2 percent to P153.1 billion. Institutional lending increased 11.5 percent to P223.7 billion.
UnionBank's customer base grew 7.6 percent to 18.9 million, giving the bank more room to lend and cross-sell.
Fee income held firm, with a fee-to-assets ratio of 1.3 percent, still above industry levels, and its broader growth story was supported by digital transactions, wealth management and bancassurance.
Credit costs decline
Credit costs dropped 17.9 percent to P4.5 billion, improving both year-on-year and quarter-on-quarter, while asset quality improved as loan portfolios matured and past problem exposures were addressed.
—Edited by Miguel R. Camus
