Q4 2025 Union Bank of the Philippines Earnings Call Transcript
Key Points
- Union Bank Of The Philippines Inc (PHS:UBP) reported a significant increase in its customer base, adding 1.6 million new customers year-on-year, bringing the total to nearly 19 million.
- The bank's net interest margins improved by 46 basis points compared to the previous year, contributing to record-high net revenues.
- Union Bank Of The Philippines Inc (PHS:UBP) achieved a net revenue to assets ratio of 7.1%, significantly above the industry average.
- The bank's consumer portfolio accounted for roughly two-thirds of its net credit margin, driven by strong performance in credit cards and CitySavings Bank.
- Union Bank Of The Philippines Inc (PHS:UBP) was recognized as the best domestic retail bank and received awards for its credit card offerings and services for high net worth clients.
- Union Bank Of The Philippines Inc (PHS:UBP) experienced a decline in net income for 2025, primarily due to one-off items and increased credit costs.
- The bank's non-interest income declined year-on-year, mainly due to lower trading gains and FX-related income.
- Operating expenses grew by 8% year-on-year, with a cost-to-income ratio of 58%, which is higher than the bank's target of below 50%.
- The bank's gross loans only grew by 4% year-on-year, with some consumer loan products remaining steady or declining.
- Union Bank Of The Philippines Inc (PHS:UBP) faces challenges from external factors such as the Israel-Iran conflict, which could impact interest rates and inflation, affecting the bank's financial performance.
Good afternoon. Welcome to Union Bank's earnings results briefing for the full year of 2025. My name is [Jackie de Jesus] and I will be your moderator for today's call. Some reminders before we begin. Number one, we have put microphones on mute to minimize background noise during our presentation.
Second, questions have been requested from the audience in advance, which we will go through during the Q&A portion. In case there are more questions from the floor, please feel free to click on the raise hand button or submit questions via the Q&A box. Those not taken up during the Q&A portion will be answered via email.
And lastly, this briefing will be recorded. By joining this session, you consent to your name, voice, image, and chat comments being recorded for use and dissemination.
For today's call, Dominic Banal, the Trading Head for Global Markets, will kick us off with Union Bank's macroeconomic and industry outlook. After that, Union Bank's CFO, Dmi Lozano, will present the bank's financial performance.
With that, let
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