UnionBank earnings soar to P3.8 billion

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April 28, 2026 | 12:00am

MANILA, Philippines — UnionBank of the Philippines booked a net income of P3.8 billion in the first quarter as stronger lending activity, wider margins and lower credit costs helped offset trading losses tied to market volatility from the US-Iran conflict.

The Aboitiz-led bank said first-quarter earnings surged by 167 percent from a year ago. It also rose by 8.7 percent from the previous quarter, extending the profit recovery that began in the second half of 2025.

UnionBank’s total revenues climbed by 11.8 percent year-on-year to P21.7 billion, supported by gains in its core banking businesses.

Net interest income increased to P16.8 billion as loan growth remained firm across both consumer and institutional segments.

The bank said consumer lending stayed robust, particularly for unsecured products, which expanded by 19.2 percent to P153.1 billion. Consumer lending accounted for 60 percent of the lender’s total loan portfolio. Institutional loans likewise grew by 11.5 percent to P223.7 billion.

The bank’s net interest margin, a key profitability gauge that measures earnings from lending versus funding costs, improved by 34 basis points to 6.7 percent. This was aided by a 7.8 percent rise in low-cost current and savings account deposits.

Fee income remained stable, with its fee income-to-assets ratio at 1.3 percent, or more than double the industry average.

The bank said this continued to be supported by higher digital transaction volumes as well as stronger contributions from wealth management and bancassurance.