Union Bank of the Philippines, Inc. (UnionBank) reported a 113% increase in net profit to P6.91 billion for the first half of the year, supported by continued revenue growth and stronger core businesses.

“The parent bank sustained its performance from the previous quarter and accounted for 96% of group profit, supported by the continued strength of its core businesses,” UnionBank said in a disclosure to the stock exchange on Monday. Its financial statement was not available as of press time.

Net revenues rose 9% year on year to P43.1 billion in the first semester.

Net interest income increased by 8% to P33.72 billion, driven by strong loan growth. Interest income reached P42.37 billion, while interest expense amounted to P8.65 billion. Net interest income is a key earnings source for banks, reflecting the spread between income from lending and investments and the cost of funding.

Net loans and other receivables stood at P565.67 billion as of June.

“Consumer lending remained the primary growth engine and accounted for 61% of the bank’s total loan portfolio,” UnionBank said. “Gross consumer loans of the group grew by 10%, led by credit cards and personal loans, which collectively grew by 18%.”

The bank’s net interest margin improved by 40 basis points to 6.9%.

Despite the expansion of its loan portfolio, credit costs fell 19% year on year to P9.4 billion as asset quality improved. Credit costs are closely watched because they indicate how much a bank is setting aside for potential loan losses.

“The bank continued to build reserves to support sustained loan growth and reinforce balance sheet strength following ongoing portfolio reviews,” it said.

Non-interest income also increased, rising 12% year on year to P9.41 billion.

“The growth was primarily driven by higher fee income from card-related fees, wealth management, bancassurance, and other everyday banking transactions, benefiting from the bank’s 19.3 million customer base,” UnionBank said.

Operating expenses totaled P24.77 billion.

Deposits at the bank stood at P735.12 billion at end-June. UnionBank also said current account and savings account balances grew by 7%. Current account and savings account deposits are an important funding source for banks because they typically help support lending activity and liquidity.

Total assets reached P1.18 trillion as of June, while capital funds amounted to P205.21 billion.

“We continue to build on the actions we began in 2025 to enhance our balance sheet while sharpening our focus on the businesses that drive long-term value for the group. Our customer franchise remains strong, asset quality continues to improve, and we are confident that we can continue the positive profitability trajectory,” UnionBank Chief Financial Officer Manuel R. Lozano said.

“At the same time, we are taking deliberate steps to simplify the group and rationalize businesses where we believe resources can be better deployed. These actions are part of UnionBank’s broader strategy to sharpen focus on its core capabilities while continuing its journey to lead next-generation banking in the Philippines,” he added.

UnionBank shares rose by 65 centavos, or 2.67%, to close at P24.95 each on Monday. — BVR