THE Union Bank of the Philippines (UBP) disclosed of having closed the first half of 2026 with a net income of P6.9 billion, up 113 percent compared to the same period last year, supported by continued strength of its core businesses.
In a statement, the bank said its net revenues reached P43.1 billion in the first half of this year, up 9 percent year-on-year, backed by expansion in consumer lending, CASA, and fee income.
UBP’s net interest income grew by 8 percent year-on-year to P33.7 billion, driven by loan expansion.
‘Consumer lending remained the primary growth engine and accounted for 61 percent of the bank’s total loan portfolio,’ the country’s ninth-largest lender noted.
Gross consumer loans climbed by 10 percent, led by credit cards and personal loans that collectively grew by 18 percent, .
Net interest margin improved by 40 basis points to 6.9 percent, supported by a 7 percent increase in CASA balances.
Non-interest income also grew by 12 percent to P9.4 billion year-on-year, with growth primarily driven by higher fee income from card-related fees, wealth management, bancassurance, and other everyday banking transactions, benefiting from the bank’s 19.3 million customer base.
The bank said it continued to build reserves to support sustained loan growth and reinforce balance sheet strength following ongoing portfolio reviews.
Despite this, it said credit costs declined 19 percent year-on-year to P9.4 billion, driven by continued improvements in asset quality.
‘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,’ UBP Chief Financial Officer Manuel R. Lozano was quoted in the statement as saying.
Lozano added that the bank’s customer franchise ‘remains strong, asset quality continues to improve, and we are confident that we can continue the positive profitability trajectory.’
At the same time, he said UBP is ‘taking deliberate steps to simplify the Group and rationalize businesses where we believe resources can be better deployed.’
‘These actions are part of Unionbank’s broader strategy to sharpen focus on its core capabilities while continuing its journey to lead next-generation banking in the Philippines,’ added Lozano.