UnionBank of the Philippines reported a net income of PHP 3.8 billion for the first quarter of 2026, marking a 167% increase from the same period last year.

The surge in UnionBank Philippines Q1 profits was primarily driven by strong loan growth and higher digital transaction volumes.

Net revenues reached PHP 21.7 billion, representing an 11.8% year-on-year increase. The bank also expanded its total customer base by 7.6% to reach 18.9 million users.

Consumer lending, which makes up 60% of the bank’s total loan portfolio, saw unsecured products grow by 19.2% to PHP 153.1 billion. Institutional loans also expanded by 11.5% to PHP 223.7 billion.

This loan expansion pushed net interest income to PHP 16.8 billion. Meanwhile, fee income remained stable, supported by increased digital transaction volumes, wealth management, and bancassurance.

Credit costs dropped by 17.9% year-on-year to PHP 4.5 billion as asset quality improved across its portfolios following the resolution of legacy credit exposures.

“First quarter results provide an early indication that the bank is continuing its path to improved performance,” said Manuel R. Lozano, Chief Financial Officer, UnionBank.

Lozano added that the bank remains focused on protecting earnings and reinforcing its portfolio against market volatility brought about by recent geopolitical developments.

Featured image: Edited by Fintech News Philippines based on an image by ismode via Freepik.