UNION Bank of the Philippines (UnionBank) reported a sharp rise in first-half net income to P6.9 billion from P3.2 billion a year earlier on stronger lending activity and higher fee-based revenues.
In a statement on Monday, UnionBank said the parent bank accounted for the bulk, or 96 percent, of group profit, backed by the continued strength of its core businesses.
Operating revenues rose nine percent to P43.1 billion, underpinned by sustained expansion in consumer lending, growth in low-cost deposits and increased income from banking services.
Interest income after funding costs reached P33.7 billion, up eight percent from a year earlier, as loan expansion continued. The bank's net interest margin widened to 6.9 percent from 6.5 percent, supported by a seven-percent increase in current and savings account deposits.
Consumer loans remained the largest business segment, comprising 61 percent of total loan portfolio. Gross consumer lending increased by 10 percent, with credit cards and personal loans registering a combined 18-percent growth.
Fee-driven businesses lifted non-interest income by 12 percent to P9.4 billion, generated mostly by higher card-related fees, wealth management, bancassurance and transaction banking activities.
The bank added it continued to build reserves to support sustained loan growth and reinforce its balance sheet following ongoing portfolio reviews. It also noted that credit costs fell 19 percent from a year earlier to P9.4 billion as the quality of its loan book improved.
Chief Financial Officer Manuel Lozano said the bank's financial performance reflected measures initiated last year to improve the group's balance sheet.
"We continue to build on the actions we began in 2025 to enhance our balance sheet while sharpening our focus on the businesses that drive long-term value for the Group," he said.
"Our customer franchise remains strong, asset quality continues to improve, and we are confident that we can continue the positive profitability trajectory."
Lozano said management was also streamlining the group to better deploy resources as part of the bank’s broader strategy to sharpen focus on its core capabilities.
UnionBank shares on Monday rose P0.65, or 2.67 percent, to close at P24.95 each.
