UnionBank Posts 113% Surge in H1 Net Income Driven by Consumer Lending and Deposit Growth

Aboitiz-led Union Bank of the Philippines (UnionBank) has reported a significant 113% year-on-year increase in its first-half net income for 2026, reaching P6.9 billion. This robust growth was primarily driven by the expansion of consumer lending, a rise in current and savings account (CASA) deposits, and strong performance in fee income. The bank's net interest income rose by 8% to P33.7 billion, supported by higher loan volumes. Notably, gross consumer loans grew by 10%, with credit cards and personal loans seeing an 18% expansion. The net interest margin also saw an improvement of 40 basis points. Non-interest income increased by 12% to P9.4 billion, attributed to higher fee income from card-related fees, wealth management, bancassurance, and other everyday banking transactions. "We continue to build on the actions we began in 2025 to enhance our balance sheet while sharpening our focus on the businesses that drive long-term value for the Group," said UnionBank Chief Financial Officer Manuel Lozano in a regulatory filing. "Our customer franchise remains strong, asset quality continues to improve, and we are confident that we will sustain our positive profitability trajectory." Credit costs for the period declined by 19% to P9.4 billion, largely due to continued improvements in the bank's asset quality. "At the same time, we are taking deliberate steps to simplify the Group and rationalize businesses where we believe resources can be better deployed," Lozano added. UnionBank's shares were last trading at P24.95 apiece, up P0.65 or 2.67% from Friday's close of P24.30. The Philippine economy continues to show resilience, supported by robust domestic demand and remittances from overseas workers, despite inflationary pressures and global uncertainties. The banking sector is actively capitalizing on opportunities, driven by trends such as digitalization and the expansion of consumer finance.