UnionBank Posted P3.8 billion Net Income in 1Q2026, Sustaining Positive Momentum

UnionBank of the Philippines posted a net income of P3.8 billion in the first three months of 2026, up 167% year-on year. The Bank was able to continue with the momentum that started in 2H2025, where it saw a significant earnings uptrend, despite some trading losses arising from market volatility associated with the Iran conflict. Quarter-on-quarter net income grew by 8.7%. This puts the Bank on a sustainable path towards its goal of delivering improved profitability, driven by core recurring income.

Net revenues reached P21.7 billion, up 11.8% year-on-year, driven by the solid performance of core business drivers.  Total customers rose to 18.9 million, up by 7.6% year-on-year. This provides a broader base to support lending and to further enable cross-sell and upsell.

Net interest income grew to P16.8 billion, driven by loan growth. Consumer lending, which made up 60% of the Bank’s total loan portfolio, remained strong, particularly in unsecured products, which grew 19.2% to P153.1 billion.  Institutional loans also expanded, increasing by 11.5% to P223.7 billion. Net interest margin increased by 34 basis

points to 6.7%, supported by CASA growth of 7.8%. Growth in CASA was driven by the continued deepening of transaction banking relationships established in 2025.

Fee income remained stable with a fee income-to-assets ratio of 1.3%, more than twice the industry average. Growth continues to be driven by higher digital transaction volumes, alongside increased contributions from wealth management and bancassurance.

Credit costs declined by 17.9% year-on-year to P4.5 billion and improved by 19.1% quarter-on-quarter. Asset quality strengthened as portfolios continue to season, particularly in the unsecured segment. Key subsidiaries also demonstrated improvements, supported by lower credit costs after addressing legacy credit exposures in 2025 and further enhancements in risk controls.

“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. First quarter results provide an early indication that the Bank is continuing its path to improved performance. However, recent geopolitical developments have introduced potential risks.

In response, we took proactive measures to reinforce our portfolio and enhance credit risk management. Our immediate focus is to ensure we effectively navigate the impact of recent developments. We are strongly positioned in terms of capital and liquidity, and we remain focused on protecting earnings to maintain our good performance despite the heightened market volatility,” said Manuel R. Lozano, Chief Financial Officer. #