UnionBank of the Philippines, one of the country’s major banks that you can invest in through the stock market, just announced some exciting news about how much money they made in the first half of 2026. Let’s break down what happened in a way that’s easy to understand.
What is UnionBank?
UnionBank is what’s called a “universal bank” – think of it as a big financial store that offers many different services like savings accounts, loans, credit cards, and business banking. The bank is owned by several big companies including Aboitiz Equity Ventures, Inc. (AEV), the Social Security System (SSS), and Insular Life Assurance Company, Ltd. (Insular Life).
The bank is known for being really good with technology and digital services. They have a popular mobile app called UnionBank Online and a special platform for businesses called The Portal.
The Big Profit Jump
According to the announcement made on July 24, 2026, UnionBank earned P6.9 billion in net income during the first six months of 2026. To understand how impressive this is, imagine if you earned P100 last year doing chores, and this year you earned P213 doing the same work – that’s basically what happened to UnionBank! Their profit grew by 113% compared to the same period last year, which means it more than doubled.
Most of this money (96%) came from the main bank itself, showing that their core business is doing really well.
Where Did All This Money Come From?
The bank’s total revenues reached P43.1 billion in the first half of 2026, which is 9% higher than the previous year. Here’s where the money came from:
1. Interest Income (P33.7 billion)
When banks lend money to people or businesses, they charge interest – kind of like when you might charge a friend an extra cookie if they borrow your lunch. UnionBank earned P33.7 billion this way, which is 8% more than last year. Most of this came from loans to regular people (called consumer lending), which made up 61% of all the money they lent out.
Credit cards and personal loans were especially popular, growing by 18%. The bank also did better at managing the difference between what they pay people for deposits and what they charge for loans – this is called “net interest margin,” which improved to 6.9%.
2. Fee Income (P9.4 billion)
Banks also make money from fees – like when you pay to use certain services. UnionBank earned P9.4 billion from fees, which is 12% more than last year. This money came from things like credit card fees, helping people manage their investments (wealth management), selling insurance (bancassurance), and everyday banking transactions. With 19.3 million customers, that’s a lot of people using their services!
What About CASA?
You might have noticed the term “CASA” mentioned – this stands for Current Account and Savings Account. These are the basic bank accounts where people keep their money. UnionBank’s CASA balances grew by 7%, which is good because the bank doesn’t have to pay much interest on these accounts, making them a cheaper source of money for the bank to use.
Managing Risks and Building Strength
The bank set aside P9.4 billion for credit costs – this is money they save in case some people can’t pay back their loans. Interestingly, this amount actually went down by 19% compared to last year, which means fewer people are having trouble paying back what they borrowed. This is a good sign that the bank is lending money to people who can actually pay it back.
What the Bank’s Leaders Are Saying
Manuel R. Lozano, who is UnionBank’s Chief Financial Officer (the person in charge of managing the bank’s money), explained that they’re working on making the bank stronger and focusing on the businesses that make the most sense for them. He mentioned that they’re simplifying how the bank works and making sure they use their resources in the smartest way possible.
According to Lozano, the bank’s customer base is strong, the quality of their loans is getting better, and they believe they can keep making good profits while continuing to be a leader in modern, technology-focused banking in the Philippines.
Understanding the Numbers
Here’s a quick summary of UnionBank’s first half 2026 performance:
- Net Income: P6.9 billion (up 113% from last year)
- Total Net Revenues: P43.1 billion (up 9%)
- Net Interest Income: P33.7 billion (up 8%)
- Non-Interest Income: P9.4 billion (up 12%)
- Consumer Loans Growth: 10%
- Credit Cards and Personal Loans Growth: 18%
- CASA Growth: 7%
- Customer Base: 19.3 million
- Credit Costs: P9.4 billion (down 19%)
This information comes directly from UnionBank’s press release dated July 24, 2026.
Source Note:This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.
