Net income, however, dropped 35 percent to P3.3 billion as the bank absorbed credit costs from new customers and one-off investments aimed at strengthening its operations and customer platforms.
Management’s view
“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 [the first half of] 2025,” UnionBank president and CEO Ana Aboitiz Delgado said in a stock exchange filing.
“This positions us to better reflect the bank’s true performance moving forward. 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.
Interest earnings grew
Net interest income was boosted by a 61-basis point improvement in net interest margin to 6.4 percent, driven by strong credit card and personal loan growth.
Fee income climbed 17.1 percent as UnionBank’s retail customer base grew to 18 million, lifting transaction volumes and pushing its fees-to-assets ratio among the highest in the industry.
The bank’s current and savings account ratio improved to 65.2 percent, cutting funding costs and reinforcing its transaction banking base.
—Edited by Miguel R. Camus
