UnionBank sees stronger earnings this year

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April 25, 2026 | 12:00am

MANILA, Philippines — Union Bank of the Philippines expects improved earnings this year as it emerges from a “fix-and-build” phase in 2025, with management pointing to stronger core operations and stabilizing subsidiaries to drive more sustainable growth.

UnionBank president and CEO Ana Aboitiz Delgado said the bank entered 2026 on solid foundations, following a year focused on strengthening governance, risk discipline and operational reliability.

“We entered 2026 with a clear agenda for a next generation UnionBank, one that blends technology with human insight to serve customers across every stage of their financial journey,” Delgado said during the bank’s annual stockholders’ meeting.

The Aboitiz-led bank posted a consolidated net income of P10 billion in 2025, 16.9 percent lower than P12.03 billion in 2024, as higher credit costs and one-off cleanup expenses weighed on earnings.

UnionBank chief financial officer Manuel Lozano said the lender expects a rebound in profitability this year as the effects of one-time costs fade and subsidiaries stabilize.

“Looking ahead, management expects stronger income in 2026, as subsidiaries stabilize following the completion of cleanup initiatives in 2025,” Lozano said.

The bank added that the impact of one-off expenses, estimated at around P4 billion, weighed on 2025 results but would not recur.

Over the medium term, the group sees a “clear path to double-digit return on equity,” supported by improved performance of key segments, growth in recurring income, better cost efficiency and lower credit costs.

Delgado said the bank would continue to deepen its use of data and artificial intelligence to enhance customer experience and operational efficiency.

“AI is already enhancing digital account opening, real-time card issuance, fraud detection, anti-money laundering operations and marketing,” she said.

The bank is also preparing for next-generation payments, including AI-driven commerce, while simplifying legacy systems and improving reliability across platforms.

Still, UnionBank flagged risks from global developments, particularly the Middle East conflict that could affect inflation, energy prices and financial conditions.