UnionBank of the Philippines (UnionBank) today announced a sustained strong topline momentum in the first half of 2025, reporting total revenues of ₱39.7 billion, a significant 9.2% increase compared to the same period last year. This impressive growth was primarily fueled by a substantial rise in net interest income and an expanded fee-income base.
Net interest income saw a notable increase, supported by a 61-basis point improvement in net interest margin (NIM), reaching 6.4% in 1H 2025. This was a direct result of the continued expansion of the Bank’s high-yielding consumer portfolio, particularly in credit cards and personal loans, underpinned by successful customer acquisition and cross-sell initiatives. Furthermore, funding costs improved due to a declining interest rate environment and an increased share of low-cost Current Account Savings Account (CASA) deposits. The Bank’s CASA ratio strengthened to 65.2%, highlighting the robustness of its transaction banking franchise.
UnionBank’s retail customer base expanded to 18 million as of 1H 2025, contributing to higher transaction volumes and a 17.1% year-on-year increase in fee income. The Bank’s fees-to-assets ratio stood at an impressive 1.3%, ranking among the highest in the industry and underscoring its strong capability to generate fee-based revenues relative to its size.
The solid topline performance provided a crucial buffer against the impact of credit costs, which naturally arose from the significant addition of new credit card customers to the Bank’s retail base and from its subsidiaries. These credit costs, combined with one-time expenses incurred to enhance operational and financial resiliency, resulted in a net income of ₱3.3 billion for the first half of 2025.
“As we continue our efforts to grow our customer base, we are also ensuring we enhance operational resilience to be able to deliver our desired customer experience,” said Ana Aboitiz Delgado, President and Chief Executive Officer of UnionBank. “These strategic moves come with upfront costs booked in 1H 2025. This positions us to better reflect the Bank’s true performance moving forward. Our topline has consistently shown an encouraging trend, and with lower costs ahead, we anticipate improved net income in the coming months. These efforts position the Bank for a more resilient, sustainable, and accelerated trajectory as we enter the next phase of our growth journey.”
