UNION Bank of the Philippines (UnionBank) on Friday reported a 53-percent increase in net income in the first nine months of 2026 to P9.9 billion and also announced plans to absorb digital banking subsidiary UnionDigital Bank and fintech arm UBX to strengthen its digital banking capabilities.
In a disclosure, the bank said net revenues in the January-to-September period rose 8 percent to P65.5 billion, backed by a 9-percent increase in net interest income as net interest margin improved by 34 basis points to 6.9 percent.
The bank attributed the improvement largely to growth in current and savings account deposits, which rose 5 percent year-on-year.
“Our first-nine-month performance gives us momentum to deliver a better full-year result than last year, even under more difficult market conditions,” Chief Financial Officer Manuel Lozano said.
He said the bank was building reserves to strengthen its balance sheet amid rising credit pressures while optimizing capital deployment and rationalizing businesses to support long-term value.
UnionBank said non-interest income grew 5 percent to P13.6 billion, while fees and commissions also increased 5 percent to P11.9 billion. Income from wealth management and bancassurance climbed 52 percent, accounting for 18 percent of total fee income.
Operating expenses reached P37.4 billion by the end of the third quarter, although the bank said expenses grew at a slower pace than revenues as it focused on cost management and process improvements.
Credit costs declined by P586 million year-on-year. Gross and net nonperforming loan ratios stood at 6.56 percent and 2.90 percent, respectively, while nonperforming loan coverage rose to 75.77 percent from 69.65 percent a year earlier.
UnionBank’s common equity tier 1 ratio stood at 13.7 percent, while its capital adequacy ratio was 14.6 percent, both above regulatory requirements, the bank said.
Meanwhile, the bank said its board had approved the planned integration of UnionDigital Bank and fintech arm UBX into the parent bank, subject to approval from the Bangko Sentral ng Pilipinas (BSP) and other regulatory authorities.
The bank said the move would strengthen its digital banking capabilities, improve efficiencies and allow it to serve more customers through a broader range of products and services.
“By integrating UnionDigital and UBX with UnionBank, we are strengthening our digital proposition, creating greater efficiencies, and accelerating our ability to serve more Filipinos at scale,” UnionBank President and Chief Executive Officer Ana A. Delgado said.
She said customers would continue to have a digital-first banking experience and gain access to the parent bank’s wider products and services. UnionDigital customers may continue using their accounts, deposits, loans, mobile application and other services during the transition, the bank said.
The bank added it would keep UnionDigital and UBX customers informed and provide advance notice of any changes as the integration proceeds.
On Friday, shares of UnionBank added P0.35, or 1.67 percent, to close at P21.25 each.
