The Aboitiz Group’s Union Bank of the Philippines reported a drop in net income to ₱6.5 billion in the first nine months of 2025 from the ₱8.6 billion generated in the same period last year, partly due to higher expenses.

The bank said in a disclosure to the Philippine Stock Exchange that it posted a ₱3.2 billion profit in the third quarter, 77 percent higher than the previous quarter but lower than the ₱3.5 billion reported for the same period last year.

“This quarter’s results keep us on track towards our growth outlook. The Bank will continue to build on the progress made in strengthening operational resiliency and reinforcing the balance sheet,” said UnionBank Chief Financial Officer Manuel Lozano.

He noted that, “Credit costs have stabilized while portfolio quality continues to improve. Combined with strong topline momentum, these developments position UnionBank for a positive growth trajectory in the future.”

Net revenues for the nine-month period reached ₱60.5 billion, up 7.2  percent year-on-year, primarily driven by sustained growth of the bank’s consumer business.

The parent bank’s unsecured consumer loans rose by 16 percent to ₱138.5 billion, on the back of targeted digital marketing campaigns and strategic portfolio actions.

Consumer loans continue to comprise a significant portion of the Bank’s loan book, accounting for 60 percent of total loans — nearly triple the industry average.

Net interest income climbed to ₱47.5 billion, supported by a 51-basis point improvement in net interest margin to 6.4 percent, among the highest in the industry.

This was largely due to the strong nine percent year-on-year increase in low-cost CASA deposits, which helped reduce funding costs.

The bank’s fee income-to-assets ratio stood at 1.3 percent, more than double the industry average.

Operating expenses totaled ₱35.5 billion from ₱33 billion last year. The bank said this aligns with continued investments in customer acquisition, service delivery, client engagement, and operational efficiency — key pillars in the expansion of both consumer and institutional banking franchises.

Credit costs dropped to ₱4 billion in the third quarter, down by ₱2 billion quarter-on-quarter, pointing to improvement in asset quality.

With stronger asset quality, higher coverage, and solid capital ratios, the Bank said it is well-positioned to support future business expansion.