MANILA, Philippines — Aboitiz-led Union Bank of the Philippines (UnionBank) reported a decline in its full-year net income for 2025, falling to ₱10 billion from the ₱12 billion earned in 2024. Despite the drop, the bank highlighted a strong recovery in the second half of the year, signaling a return to its growth trajectory.
- Net Income: ₱10 billion (down from ₱12 billion in 2024).
- Net Revenues: Rose to ₱83.2 billion, driven by a 9% increase in net interest income, which reached ₱64.2 billion.
- Customer Base: Expanded to 18.6 million, up from 17 million a year ago.
- Consumer Lending: Unsecured consumer loans (credit cards and personal loans) grew by 18% to ₱150.8 billion.
The bank’s bottom line was primarily affected by non-recurring costs and front-loaded investments.
- One-time Expenses: Results reflected tax-related write-offs from a subsidiary and integration costs following the acquisition of Citi’s consumer business.
- Operating Costs: Expenses rose as the bank invested heavily in digital acquisition, IT resiliency, and customer engagement platforms.
UnionBank executives noted that the bank’s “topline” performance remains robust.
- Momentum: Profit in the second half of 2025 was more than double that of the first half, suggesting that the peak of integration and one-time costs has passed.
- Asset Quality: The non-performing loan (NPL) ratio improved to 6.8%, down from earlier quarters, while net interest margins remained among the highest in the industry at 6.4%.
“Our results still reflect underlying strength in our core franchise,” the bank said in its disclosure. CFO Manuel Lozano stated that with credit costs stabilizing and operational resiliency strengthening, the bank is “well-positioned for a positive growth trajectory” heading into 2026.