UnionBank of the Philippines posted a full-year 2025 net income of P10.0 billion, down 16.7% from the previous year, as the lender absorbed one-time costs from balance sheet cleanup and the integration of Citigroup’s retail assets.
Despite the decline, earnings in the second half more than doubled, rising 108% from the first six months. The rebound was driven by record topline revenues at the parent bank, which helped offset subsidiary-level adjustments and capital-strengthening costs.
UnionBank’s shift toward higher-margin retail segments is gaining traction. Consumer loans now account for 61% of its total P1.3 trillion loan book, supported by a customer base that expanded nearly 10% to 18.6 million.
Unsecured consumer lending, a key part of the bank’s digital acquisition strategy, grew 18% to P150.8 billion, boosting net interest income to P64.2 billion.
As a result, the bank’s net interest margin widened by 46 basis points to 6.4%, well above that of its larger domestic peers.
The digital push also drove non-interest income, with a fee-to-assets ratio of 1.3%, more than double the industry average. Growth was supported by higher digital transaction volumes, including bills payments, fund transfers, and card-related interchange fees, reflecting strong engagement from its expanded customer base.
By aggressively provisioning and cleaning up its balance sheet in 2025, UnionBank is positioned for sustained growth. Its stable capitalization provides a buffer for continued expansion into retail and digital finance.
