UNION Bank of the Philippines (UnionBank) saw net income surge by 167 percent in the first three months of 2026 to P3.8 billion, sustaining the earnings momentum that began in the second half of 2025.
In a disclosure on Monday, the bank said net income was also up 8.7-percent quarter on quarter, signaling a continuing recovery path driven by steady core recurring income, despite trading losses linked to market volatility stemming from geopolitical tensions.
Net revenues rose 11.8 percent year on year to P21.7 billion, supported by strong performance across core businesses.
The bank said total customers reached 18.9 million, up 7.6 percent from a year earlier, providing a wider base for lending and cross-selling opportunities.
Net interest income climbed to P16.8 billion, backed by loan expansion amid robust growth in consumer lending, which accounted for 60 percent of the total loan portfolio. It noted that unsecured products, in particular, grew 19.2 percent to P153.1 billion while institutional lending increased by 11.5 percent to P223.7 billion.
UnionBank said net interest margin improved by 34 basis points to 6.7 percent, supported by a 7.8-percent rise in low-cost current and savings accounts, which it said was driven “by the continued deepening of transaction banking relationships established in 2025.”
Fee income remained steady, with a fee income-to-assets ratio of 1.3 percent, more than twice the industry average, bolstered by higher digital transaction volumes as well as contributions from wealth management and bancassurance.
Credit costs declined 17.9 percent year on year to P4.5 billion but improved by 19.1 percent compared to the preceding quarter, as asset quality strengthened and portfolios continued to mature, particularly in the unsecured segment.
“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,” Chief Financial Officer Manuel Lozano said.
“First quarter results provide an early indication that the bank is continuing its path to improved performance. However, recent geopolitical developments introduced potential risks. In response, we took proactive measures to reinforce our portfolio and enhance credit risk management,” he added.
Lozano said the bank remained well-positioned in terms of capital and liquidity, adding that they are focused on protecting earnings amid heightened market volatility.
Key subsidiaries also showed improvements, the bank continued, supported by lower credit costs following the resolution of legacy exposures in 2025 and continued enhancements in risk controls.
UnionBank shares rose P0.20, or 0.81 percent, to close at P25.00 each on Monday. NAZYLEN JOY MABANGLO
