Union Bank of the Philippines reported a 113% jump in first-half net profit to P6.9 billion, driven by consumer lending expansion, higher fee income, and lower provisioning costs.
The parent bank accounted for 96% of total group profit for the six-month period, the lender said in a statement.
Net revenues rose 9% year-on-year to P43.1 billion, with net interest income increasing 8% to P33.7 billion on loan expansion.
Consumer loans accounted for 61% of total lending, led by an 18% combined growth in credit cards and personal loans. Gross consumer loans expanded 10%.
Net interest margin broadened by 40 basis points to 6.9%, aided by a 7% increase in current and savings account (CASA) deposits.
Non-interest income climbed 12% to P9.4 billion, boosted by card-related fees, wealth management, and bancassurance across its 19.3 million customer base.
Credit costs fell 19% year-on-year to P9.4 billion amid improved asset quality, though the bank said it continued to build reserves following ongoing portfolio reviews.
“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,” CFO Manuel R. Lozano said in a statement, adding that the bank is taking steps to rationalize select businesses to optimize resource deployment.
