UNION Bank of the Philippines (UnionBank) posted a net income of P10.0 billion in 2025, down by about 17 percent from the previous year’s P12.029 billion, due to higher operating expenses, one-time costs at the subsidiary level and increased provisions.
In a disclosure, the bank said the one-time costs were a result of “decisive actions” taken to clean up and strengthen its balance sheet to position it for future growth.
Full-year performance was driven mainly by the parent bank, including the acquired Citi consumer business, with UnionBank noting that second-half earnings more than doubled that of the first six months.
Net revenues for the year rose to P83.2 billion, said to be supported by an expanding customer base that grew to 18.6 million, up 9.7 percent from the previous year.
Unsecured consumer loans increased 18 percent to P150.8 billion, accounting for 61 percent of total loans, while transaction banking volumes also contributed to a 12-percent rise in low-cost current account and savings account deposits, helping support margin expansion.
Operating expenses increased eight percent to P47.9 billion, while credit costs rose 18 percent year-on-year to P21.2 billion.
Asset quality was said to have improved, with the non-performing loan ratio declining to 6.8 percent while provision coverage increased to 70.8 percent from 58.2 percent in 2024.
UnionBank said its capital ratios remained strong, with common equity tier 1 at 15.03 percent and capital adequacy at 15.86 percent, well above regulatory limits.
“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.
UnionBank shares on Monday inched up P0.05, or 0.19 percent, to close at P26.70 each.
