MANILA — Union Bank of the Philippines announced a 53% surge in its net income for the first nine months of the year, reaching ₱9.9 billion driven by expanding margins and rapid retail account growth.
In an official disclosure to the Philippine Stock Exchange, the lender reported that net revenues rose eight percent year-on-year to ₱65.5 billion. This financial expansion was fueled by routine banking transactions from its growing retail customer base, which has now crossed the 19.5 million account milestone.
Consumer loans currently make up 62% of the bank’s total loan portfolio, standing at roughly triple the domestic banking sector’s average.
Net interest income climbed nine percent to ₱51.9 billion, supported by a 34-basis-point margin expansion to 6.9%. This improvement was bolstered by a five percent rise in low-cost current and savings account (CASA) deposits.
Meanwhile, non-interest income grew five percent to ₱13.6 billion, aided by a 52% surge in wealth management and bancassurance revenue that comprised 18% of total fee collections.
Operating expenses hit ₱37.4 billion, growing at a slower pace than revenues as management successfully optimized internal processes. Asset quality likewise improved, with credit costs dropping by ₱586 million year-on-year. The bank’s gross non-performing loan (NPL) ratio eased to 6.56%, the net NPL ratio fell to 2.9%, and NPL coverage strengthened to 75.77% from 69.65%.
Capital adequacy ratios remained robust, with common equity tier 1 at 13.7% and the capital adequacy ratio at 14.6%.
In tandem with its financial growth, the bank’s board greenlit a corporate restructuring plan to directly absorb its digital banking subsidiary, UnionDigital Bank, and fintech unit, UBX, pending regulatory approval from the Bangko Sentral ng Pilipinas and relevant entities.
Unionbank Chief Executive Officer Ana Delgado noted that the structural consolidation is designed to enhance the group’s digital capabilities, drive operational efficiency, and scale services while ensuring seamless continuity for existing users throughout the transition.
“The integration aims to strengthen the group’s overall digital service capabilities, achieve greater operational efficiency, and expand services at scale while maintaining continuity for existing UnionDigital and UBX users throughout the regulatory approval and transition process,” Delgado stated.