UnionBank H1 2026 net income up 113%

Aboitiz-led Union Bank of the Philippines posted a 113% year-on-year increase in its first-half net income, driven by higher consumer lending, growth in current and savings account (CASA) deposits, and stronger fee income.

Net income rose to P6.9 billion, as net interest income climbed 8% to P33.7 billion, supported by higher loan volumes. Gross consumer loans expanded 10%, led by credit cards and personal loans, which grew 18%. Net interest margin also improved by 40 basis points.

Non-interest income increased 12% to P9.4 billion, driven by 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,” UnionBank Chief Financial Officer Manuel Lozano said 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,” he added.

Credit costs for the period declined 19% to P9.4 billion, mainly 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 said.

Shares of UnionBank were last trading at P24.95 apiece, up P0.65, or 2.67%, from Friday's close of P24.30. —VBL, GMA News