Union Bank of the Philippines Reported a PHP9.2B Net Income in 2023

Union Bank of the Philippines’ net income for the year 2023 is at PHP9.2 billion. Topline revenues increased significantly due to a strong consumer business, improved margins, and customer transaction fees. However, integration costs associated with Citi's consumer business acquisition had an impact on the bank's bottom line.

Net revenues grew 36% to PHP71 billion from the same time previous year. The bank's net interest margin increased to 5.5% from 4.8% in the previous year. This resulted in a net interest income of PHP52 billion, up 34% year over year. The greater margin is due to the significant increase in consumer lending. The bank's consumer loans now make up 58% of its total loan portfolio, which includes credit cards, mortgage loans, personal/salary loans, and auto loans. Non-interest revenue increased by 41% to PHP19 billion, while fee-based income rose by 54% to PHP10 billion. Fee growth was driven by an increase in consumer transactions such as bill payments, cash transfers, interchange, and other card-related costs.

Operating expenses increased by 43% to P45 billion due to the full-year impact of the acquired Citi consumer business and UnionDigital. These new businesses were only incorporated into the banking group in the second half of 2022. At the same time, the bank incurred one-time expenses related to the integration of the acquired Citi consumer business.

As of December 2023, total assets had reached PHP1.1 trillion, up 5% from December 2022. Net loans and receivables increased 10% to PHP527 billion, while total deposits remained constant at PHP713 billion.

“We have surpassed our customer growth targets. Our customer base is now close to 14 million. The strategic shift towards a more predictable, recurring income model has proven successful, reflected in our above-industry net interest margins and fees as a proportion of our balance sheet size. Our overall profitability, however, was affected by front-loaded costs incurred in the integration of new businesses. In a way, we are temporarily carrying the cost of running on two systems – we are paying Citi a fee to support the business on their platform while we develop and fully transition all ex-Citi retail customers to our own system. These investments are necessary to ensure the sustainability of our consumer business growth moving forward”, said Manuel R. Lozano, Chief Financial Officer.

​“Investments in our new businesses are yielding highly promising results. The acquired Citi consumer business has consistently surpassed expectations, while UnionDigital attained profitability throughout its first full year of operations. We are experiencing early returns on these strategic investments, with leading indicators pointing towards a sustained increase in transactions over time. This is evidenced by a growing individual depositor base, an uptick in new-to-bank credit cards, record-breaking downloads of our mobile app, and net promoter scores that surpass industry standards. Our commitment extends to completing the seamless integration of these new businesses this year. Immediately after, you will see a stronger and more profitable UnionBank”, said Edwin R. Bautista, President & Chief Executive Officer.

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About Union Bank

Union Bank of the Philippines (UnionBank) has always been among the first to embrace technological innovations to empower its customers. Undoubtedly the Philippines' pioneer in digital banking, UnionBank is committed to be the region's digital trailblazer and aspires to be a Great Retail Bank to best serve the growing needs of Filipinos everywhere.

It has consistently been recognized as of one of Asia’s leading companies, ranking among the country’s top universal banks in terms of profitability and efficiency.

​Over the years, UnionBank has garnered a record-breaking number of awards and recognition including the most recent "Marketing Company of the Year" at the 42nd Agora Awards; "Asia Trailblazer Institution of the Year" from Retail Banker International; "Best Retail Bank in Southeast Asia 2023" from Capital Finance International; 6-Time "Digital Bank of the Year (2018-2023)" from The Asset Triple A; "Most Recommended Bank in the Philippines 2023" and 4-time "Best Retail Bank in the Philippines" from The Asian Banker; "40 Years of Excellence in Retail Banking Philippines 2023" from Global Banking and Finance; "Best Bank in the Philippines" from Euromoney Real Estate Awards 2023; "Best Private Bank, Philippines 2023" from The Digital Banker; "Best Digital Bank in Southeast Asia 2022" from Capital Finance International; back-to-back "Best Bank for Customer Experience in Southeast Asia" from Global Brands Magazine; "Best Bank Transformation in South East Asia 2021" from Global Banking and Finance; "Most Recommended Retail Bank in Asia Pacific 2021" from BankQuality.com; "Fastest Growing Fintech Company, South East Asia 2021" for UBX from Global Banking and Finance; "Best Bank for ESG 2022" from Asiamoney; backto-back "Best Bank for SMEs" (2020-2021) from Asiamoney; "SME Bank of the Year - Philippines 2021" from Asian Banking and Finance; back-to-back "#1 Best Service Domestic Bank in the Philippines 2020-2021" at the Asiamoney Cash Management Survey; “Asia’s Best Bank Transformation” from Euromoney; "Asia-Pacific Retail Bank of the Year" from Retail Banker International; "Top 2 Most Helpful Banks in Asia Pacific during COVID-19" from BankQuality.com; 3-time "Best Digital Bank Philippines" from Asiamoney and International Finance Magazine; and "Employer of the Year" awards from Stevie Awards for Great Employers, Asian Banking and Finance, and HR Asia.

UnionBank is determined to be an enabler of the Philippines’ bid to be a G20 country by 2050. Itstands firm in its promise to power the future of banking while co-creating innovations for a better world.