Union Bank Of The Philippines · PSE:UBP
Union Bank Of The Philippines — 9M 2025 Earnings Presentation
26 slides from Union Bank Of The Philippines's earnings presentation, Nov 6, 2025
Slide 1: Analysts Briefing, 6 November 2025
Briefing 6 November 2025 2:30 PM PHT Step} e12028 Together we are building the Philippines’ first techglomerate UnionBank
Slide 2: Disclaimer
Disclaimer This presentation and the information contained herein (this "Presentation") are the sole and exclusive property of Aboitiz Equity Ventures (“AEV”) and shall only be used for the purpose intended herein and may not be used, published or redistributed without the prior written consent of A
Slide 3: Agenda
Agenda Dominic Banal 1. Macroeconomic and Industry Outlook Global Markets - Trading Head Dmi Lozano 2. Financial Performance Chief Financial Officer
Slide 4: Macroeconomic and Industry Outlook
Macroeconomic and Industry Outlook
Slide 5: FOMC: Driving in the fog casts doubt on December cut
FOMC: Driving in the fog casts doubt on December cut • Powell: December cut is “not a foregone conclusion, far from it” • 2 dissents in October: Miran dissented for a 50 bps cut, Schmid dissented in favor of no cut • High level of uncertainty warrants caution: “What do you do if you’re driving in a
Slide 6: Shutdown Standoff: Day 35 and counting
Shutdown Standoff: Day 35 and counting • 14th Vote fails to pass in Senate last Tuesday (needed 60 to pass) • Meant to fund the government through Nov 21 • What Democrats want: extension of Obamacare subsidies • Affordable Care Act Premiums are expected to rise 114% early next year if enhanced subsi
Slide 7: Powell pushes against expectations of December cut
Powell pushes against expectations of December cut October 24 (Pre-FOMC) November 4 (Current) 7
Slide 8: Short end retraces after FOMC
Short end retraces after FOMC 8
Slide 9: Steep curve provides opportunities to deploy idle funds
Steep curve provides opportunities to deploy idle funds 9
Slide 10: BSP unexpectedly cut rates by 25bps to 4.75%, signals more to come
BSP unexpectedly cut rates by 25bps to 4.75%, signals more to come • BSP delivered a fourth consecutive rate cut as it flagged a weaker growth outlook • “New importance of business sentiment in light of the issues related to government infrastructure spending” • In a financial markets general assemb
Slide 11: MBNow: Implied BSP Policy Rate in PHP IRS Market much lower after BSP action
MBNow: Implied BSP Policy Rate in PHP IRS Market much lower after BSP action Implied ORR BSP Key Dates #Hike/ Cuts %Hike/ Cuts Imp. Rate Change Rate 12/11/2025 0.79 78.6% -0.20 4.55 02/12/2026 1.21 41.9% -0.10 4.44 • In September, implied year end policy rate was 4.71%, market expecting 4.54% curren
Slide 12: Local yield curve bull steepened on surprise rate cut; Room to rally
Local yield curve bull steepened on surprise rate cut; Room to rally PESO GS BVAL RATES MoM YTD Tenor End 2024 10/2/25 11/4/25 Change Change 3M 6.1600 5.2050 4.9046 -0.30 -1.26 6M 6.1000 5.3540 5.0944 -0.26 -1.01 1Y 6.0650 5.4320 5.1582 -0.27 -0.91 2Y 6.0480 5.5720 5.3817 -0.19 -0.67 3Y 6.0620 5.695
Slide 13: USD/PHP hits a fresh ALL TIME HIGH at 59.260 on growth concerns
USD/PHP hits a fresh ALL TIME HIGH at 59.260 on growth concerns • USDPHP printed fresh historical highs at Php59.260 as political risk premium and economic fallout weigh on the local currency and equity market. • USD Index surged higher to close the month at 99.950 after the Fed delivered the much-a
Slide 14: Financial Performance 9M 2025
Financial Performance 9M 2025
Slide 15: Topline growth underpinned by recurring income expansion
Topline growth underpinned by recurring income expansion Customer Growth Net Interest Margin (in #, Mn) 17.3 18.4 6.4% 16.6 6.0% 5.9% 13.9 5.5% 11.8 4.5% 4.6% 4.8% 8.9 11% 4.4% 7.1 Industry* 51 bps 2020 2021 2022 2023 2024 9M24 9M25 2020 2021 2022 2023 2024 9M24 9M25 Net Revenues Net Revenues (net o
Slide 16: UnionBank 9M25 net income at P6.5Bn
UnionBank 9M25 net income at P6.5Bn On a QoQ basis, results show improving operational performance as credit costs have stabilized UnionBank’s strong focus on the consumer segment continues to drive strong topline growth 9M25 net income is down 24% YoY, due to one-off items and impact of credit cost
Slide 17: Expansion in net interest margin mainly driven by lower funding costs
Expansion in net interest margin mainly driven by lower funding costs Net Interest Income Net Interest Margin (in PHP, Bn) Cost NIM Yield YoY 11.6% YoY 8.6% 8.6% 8.6% 8.5% 8.5% 17bps 47.5 42.6 5.9% 6.0% 6.3% 6.4% 6.4% 51bps 2.8% 2.6% 2.2% 2.1% 2.1% 68bps 7.5% YoY 9M24 FY24 3M25 1H25 9M25 Annualized
Slide 18: Credit cards, personal and salary loans are driving consumer loan growth
Credit cards, personal and salary loans are driving consumer loan growth Gross Loans, OSB Loan Mix (in PHP, Bn) Industry’s Consumer Loans ~ 23% Institutional Retail (Parent) CSB, UD, Other Subs Based on 1H25 BSP Data 1.0% YoY Cards, 22% 0.3% QoQ 528 527 532 534 Consumer, 521 Institutional, Salary Lo
Slide 19: Strong growth in CASA helped lower funding costs
Strong growth in CASA helped lower funding costs Total Deposits (Consolidated), OSB CASA Deposits (Consolidated), OSB (in PHP, Bn) (in PHP, Bn) CASA High-Cost CASA CASA to Deposit 8.5% YoY 800 66% 66% 65% 70% 64% 64% 3.7% QoQ 700 60% 708 8.8% YoY 676 684 683 653 YoY 600 2.6% QoQ 50% 229 230 238 252
Slide 20: Parent bank customer transactions driving recurring fee income
Parent bank customer transactions driving recurring fee income Non-Interest Income YTD Fees & Others (in PHP, Bn) (in PHP, Bn) Fees & Others Trading Income 9M24 9M25 YoY Fees from Customer transactions, Wealth, and Banca posted strong growth 6.5% YoY 13.8 Parent Customer 9.4 10.7 14% 12.9 YoY Transa
Slide 21: OPEX growth driven by volume and IT investments
OPEX growth driven by volume and IT investments Operating Expense Cost-to-income Ratio (in PHP, Bn) 7.3% YoY 35.5 59% 59% 59% 59% 33.0 57% 5.4% YoY 2.1% QoQ 11.5 11.2 11.5 11.8 12.1 3Q24 4Q24 1Q25 2Q25 3Q25 9M24 9M25 9M24 FY24 3M25 1H25 9M25 Quarter-to-Date Year-to-Date Annualized Year-to-Date 21
Slide 22: Credit cost starting to normalize
Credit cost starting to normalize Credit Cost – Annualized (Year-to-date) Credit Cost – Annualized (Quarter on Quarter) Parent Others Parent Consumer CSB & Other Subs UnionDigital Parent Others Parent Consumer CSB & Other Subs UnionDigital 45bps 4.5% 4.3% 4.3% 4.1% 0.5% 0.4% 3.9% 152bps 3.6% 0.3% 0.
Slide 23: Improving asset quality and coverage ratios
Improving asset quality and coverage ratios NPL Ratio UBP Industry 7.2% 6.9% 7.3% 7.1% 9M24 9M25 Parent Consumer – Unsecured 3.6% 3.8% 3.5% 3.6% 3.6% UnionDigital 28.3% 18.5% FY24 3M25 1H25 9M25 NPL Cover UBP Industry 96% 95% 95% 9M24 9M25 Parent Consumer – Unsecured 130% 148% 69% 70% 65% UnionDigit
Slide 24: Sufficient capital ratios to support growth
Sufficient capital ratios to support growth Capital Adequacy Ratio Group (CAR) Common Equity Tier 1 Capital Ratio Group (CET1) Common Equity Tier 1 Capital Ratio Parent (CET1) 17.3% 16.6% 15.8% 16.0% 15.6% 15.5% 14.9% 14.9% 15.1% 14.6% 14.9% 15.1% Regulatory Minimum Regulatory 10.0% Regulatory Minim
Slide 25: Key takeaways and outlook
Key takeaways and outlook Key takeaways Outlook In 3Q25, the bank generated a net income of Topline momentum to be sustained P3.2 billion, up by 77% QoQ, signaling upward Our growing customer base is expected to fuel topline 1 momentum. This is mainly due to higher net 1 growth, complemented by wide
Slide 26: Thank You!
Strictly private and confidential Thank You! For comments and queries, contact us via: investorrelations@unionbankph.com Strictly Private & Confidential 26
Union Bank of the Philippines — 9M 2025 Earnings Presentation on 6ix