UnionBank’s 9-Month Income Soars To ₱8.6-B

Union Bank of the Philippines has reported impressive results for the first nine months of 2024, achieving a year-to-date net income of P8.6 billion, with a third-quarter contribution of P3.5 billion.

UnionBank achieves P8.6B net income in the first nine months of 2024, fueled by digital innovation and consumer lending growth. | Photo: UnionBank Facebook

This marks a 76% increase compared to the same period last year and reflects a remarkable 14% quarter-on-quarter growth.

This financial success showcases UnionBank's stronghold in digital innovation and consumer banking, as the bank continues to leverage advanced technology to enhance customer experience and drive sustainable growth.

The bank’s net revenues surged to P57.7 billion, a 9.2% increase from the previous year, primarily fueled by the expanding consumer portfolio of the parent bank. UnionBank’s net interest income also saw a substantial boost of 14.2%, reaching P42.6 billion.

With a net interest margin of 5.9%, one of the highest in the industry, the bank’s consumer lending initiatives are paying off, making up 60% of its total loan portfolio—nearly three times the industry average.

Chief Financial Officer Manuel Lozano attributes this success to the favorable macroeconomic landscape, allowing UnionBank to optimize funding costs while sustaining high yields from its consumer business.

“The large proportion of our consumer portfolio is reflected in the continuous improvement of the bank’s net interest margin. With the improving macroeconomic backdrop and expectations of declining interest rates, there is still room for further margin expansion. We should be able to reprice our funding cost downwards, while sustaining the high yields coming from our consumer business,” said Lozano.

On the digital side, UnionBank has shown significant growth in customer acquisition and engagement, reaching over 15 million customers as of September 2024.

This includes nearly 500,000 new credit card clients this year alone, driven by the bank’s emphasis on expanding digital access and financial inclusivity. Digital fund transfer transactions have risen by 40% year-on-year, reflecting the bank’s commitment to driving digital transformation.

CEO Edwin Bautista emphasized that customer metrics, such as the rising count of new credit card holders and active digital channel users—now totaling 5.6 million—are vital revenue drivers now and in the future.

“The bank efficiently allocated its capital to expand its consumer lending activities, which was evident in our record-high net revenues. The leading indicators brought about by our growing retail customers are very promising. Our new-to-bank credit card customers per month are averaging 2.5x higher than last year. The active users of our digital channels have increased to 5.6 million from 4.7 million last year. Consequently, we have seen digital fund transfer transactions growing by 40% year-on-year. These customer metrics are the ones driving revenues today and onto the future,” said Bautista.

UnionBank’s continued dedication to innovation has solidified its reputation as a leading digital bank in Southeast Asia.

The bank has been recognized with numerous awards, including the recent “Marketing Company of the Year” at the 42nd Agora Awards, and several titles such as “Best Retail Bank in Southeast Asia 2023.”

These accolades highlight the bank’s role as a digital pioneer, an achievement it leverages to help propel the Philippines towards its ambitious goal of joining the G20 by 2050.

UnionBank remains committed to its vision of empowering Filipinos through innovative, consumer-focused banking solutions and solidifying its stance as a Great Retail Bank that is "co-creating innovations for a better world."