Union Bank of the Philippines (UnionBank), one of the country’s leading digital banks, reported earnings of P10 billion for the full year 2025, according to a press release dated February 27, 2026. The bank, which is publicly listed and owned by major shareholders including Aboitiz Equity Ventures, Inc. (AEV), the Social Security System (SSS), and Insular Life Assurance Company, Ltd., showed a strong recovery in the second half of the year.
Understanding UnionBank’s 2025 Performance
Let’s break down what happened with UnionBank’s money in 2025 in simple terms. Think of net income as the profit a company keeps after paying all its bills and expenses—it’s like your allowance after buying what you need. UnionBank made P10 billion in profit for the whole year.
What’s interesting is that the bank made much more money in the last six months of 2025 compared to the first six months—actually 108% more, which means they more than doubled their earnings in the second half. This improvement came mainly from the main bank itself, including a consumer business they bought from Citibank.
Growing Customer Base and Revenues
UnionBank’s total revenues reached P83.2 billion in 2025. To understand this better, think of revenues as all the money coming into the bank before paying expenses—like all the money you might earn from multiple sources before spending any of it.
The bank now serves 18.6 million customers, which grew by 9.7% compared to the previous year. That’s almost one out of every six Filipinos! More customers mean more people using the bank’s services, which helps the bank earn more money.
What Makes UnionBank Money?
UnionBank earns money in two main ways. First, through loans—when people borrow money and pay it back with interest. The bank’s unsecured consumer loans (loans without collateral, like credit cards and personal loans) grew by 18% to P150.8 billion. These consumer loans now make up 61% of all the money the bank has lent out, spread across credit cards, home loans, personal loans, and car loans.
The bank’s net interest income—the difference between what it earns from loans and what it pays depositors—reached P64.2 billion. Their net interest margin improved to 6.4%, which means they’re earning more profit from their lending activities.
Second, the bank earns fees from services like money transfers, bill payments, and credit card transactions. These fees are doing particularly well—UnionBank’s fee income compared to its total assets is 1.3%, which is more than double what other banks typically earn. This growth came from more people using digital banking services for everyday transactions.
Managing Costs and Deposits
UnionBank spent P47.9 billion on operating expenses (the costs of running the bank, like employee salaries and technology). This was up 8% from the previous year, though the bank notes that without one-time special costs, the increase would have been only 5%.
The bank also saw its CASA deposits (Current Account and Savings Account—basically money people keep in checking and savings accounts) grow by 12%. This is important because this type of deposit costs the bank less in interest compared to other types of deposits, helping them save money.
Asset Quality and Financial Strength
Every bank faces the challenge of borrowers who can’t pay back their loans. UnionBank’s non-performing loan ratio—loans where borrowers aren’t paying—improved from a higher level to 6.8% by year-end. The bank also increased its provision coverage (money set aside to cover bad loans) from 58.2% to 70.8%, meaning they’re better prepared for potential losses.
Credit costs, which represent the money the bank expects to lose from bad loans, totaled P21.2 billion, up 18% from the previous year.
The bank remains financially strong with capital ratios well above what regulators require. Their Common Equity Tier 1 Ratio stands at 15.03% and Capital Adequacy Ratio at 15.86%, providing a safety cushion for future growth.
Looking Ahead to 2026
According to Ana Aboitiz Delgado, UnionBank’s President and CEO, the bank took important steps in 2025 to strengthen its financial position and prepare for sustainable growth. The bank plans to focus on expanding its customer base and building recurring revenue streams in 2026, while maintaining disciplined growth and customer-focused innovation.
UnionBank is known for its digital banking capabilities, offering services through its mobile app UnionBank Online and its business banking platform called The Portal, positioning itself as a technology-driven bank in the Philippine financial sector.
