UnionBank of the Philippines saw its net income drop 34% to ₱3.3 billion in the first half of 2025, as one-off expenses weighed on the bottom line despite continued topline strength.
The Aboitiz-led bank reported total revenues of ₱39.7 billion, up 9.2% year-on-year, supported by robust growth in net interest income and rising fee-based revenues.
Unionbank said a 61-basis point increase in net interest margin to 6.4% helped fuel gains, driven by the continued expansion of its consumer lending portfolio, particularly credit cards and personal loans.
Retail momentum remained strong, with UnionBank’s customer base growing to 18 million as of June, pushing fee income 17.1% higher year-on-year. The bank’s fees-to-assets ratio reached 1.3%, among the highest in the industry.
UnionBank said its topline performance helped offset elevated credit costs, a result of its expanding credit card book, and one-time investments aimed at strengthening operational and financial resilience.
“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,” said Ana Aboitiz Delgado, UnionBank’s president and CEO.
“These strategic moves come with upfront costs booked in 1H 2025. 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,” she added.
The bank said it is confident the actions taken in the first half will support “a more resilient, sustainable, and accelerated trajectory” as it enters the next phase of its growth journey.
