UnionBank net income drops 36% amid higher costs

Union Bank of the Philippines reported a 35.9% decline in its first-semester net income, settling at P3.251 billion, primarily due to increased one-time costs and higher credit provisions.

Despite the drop in profit, the bank's total revenues climbed 9.2% year-on-year to P39.7 billion.

This revenue growth was mainly driven by robust net interest income and stronger fee-based earnings, fueled by the expansion of its credit card and personal loan portfolios.

Net interest margin also improved by 61 basis points to 6.4 percent.

UnionBank President and CEO Ana Aboitiz Delgado stated that while current costs are elevated, lower costs ahead are anticipated to improve net income, positioning the bank for a more resilient and accelerated growth trajectory.