MANILA, Philippines — Union Bank of the Philippines (UnionBank) reported a net income of ₱10 billion for the full year 2025. While the figure represents a decline from the ₱12 billion earned in 2024, the bank highlighted a significant “inflection point” in its financial performance, driven by a powerful recovery in the second half of the year.
The bank’s 2025 results were a “tale of two halves,” as it navigated the final stages of integrating Citigroup’s consumer business.
- Revenue Growth: Total net revenues surged to ₱83.2 billion, a 16% year-on-year increase.
- Net Interest Income: Rose by 9% to ₱64.2 billion, supported by a industry-leading net interest margin of 6.4%.
- Momentum Shift: Profitability in the second half of 2025 was more than double that of the first half, signaling that the heavy costs associated with the Citi migration have peaked.
UnionBank continues to pivot toward high-margin consumer lending, which now accounts for a significant portion of its book.
- Customer Base: The bank added 1.6 million new customers in 2025, bringing its total to 18.6 million.
- Unsecured Lending: Credit cards and personal loans grew by 18%, reaching a total of ₱150.8 billion.
- Digital Adoption: Over 14 million users are now active on the UnionBank Online app, maintaining its position as a leader in Philippine digital banking.
The 17% drop in net income was primarily attributed to:
- Non-recurring Costs: One-time IT and integration expenses related to the Citi acquisition.
- Front-loaded Investments: Increased spending on customer acquisition and system resiliency to handle higher transaction volumes.
- Provisions: Credit loss provisions remained elevated at ₱14.2 billion as the bank grew its unsecured consumer portfolio.
UnionBank CFO Manuel Lozano expressed confidence that 2026 will be a year of acceleration. “Our 2025 performance shows that the ‘heavy lifting’ of the Citi integration is behind us. With our infrastructure in place and our consumer business scaling rapidly, we are bracing for a much stronger growth trajectory moving forward.”
