Union Bank Of The Philippines · PSE:UBP
Union Bank Of The Philippines — FY2025 Earnings Presentation
27 slides from Union Bank Of The Philippines's earnings presentation, Mar 9, 2026
Slide 1: FY2025 Analyst Briefing
Briefing 9 March 2026 2:30 PM PHT | GT2025 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: Israel-Iran war brings significant volatility in sharp risk-off move
Israel-Iran war brings significant volatility in sharp risk-off move ➢ Oil shoots up to 115/bbl on Strait of Hormuz closure • Over the weekend, UAE and Kuwait announced cuts due to storage and bottleneck concerns • Some projects are at 4M bbl/day in reduced production, around 5% of global oil produc
Slide 6: 2026 cut odds decrease on oil spike
2026 cut odds decrease on oil spike February 24 March 9 (Current) 6
Slide 7: Treasuries sell off on global risk off move
Treasuries sell off on global risk off move 7
Slide 8: US curve continues to steepen, newly issued ROP trading higher than Treasuries
US curve continues to steepen, newly issued ROP trading at 100 bps higher than Treasuries 8
Slide 9: BSP cuts rates to 4.25%; Recent events could trigger shift in policy stance
BSP cuts rates to 4.25%; Recent events could trigger shift in policy stance ➢ In latest interview, Gov Remolona offers insights on how this can impact the monetary policy path ➢ Gov Remolona: "10% (oil) is still very manageable. If it goes up 50% then that's going to be something we have to deal wit
Slide 10: BVAL curve shifted higher due to the conflict in the Middle East
BVAL curve shifted higher due to the conflict in the Middle East PESO GS BVAL RATES MoM YTD Tenor End 2025 2/4/26 3/6/26 Change Change 3M 4.8496 4.6820 4.5370 -0.15 -0.31 6M 4.9863 4.7088 4.5881 -0.12 -0.40 1Y 5.0391 4.7497 4.6658 -0.08 -0.37 2Y 5.3721 5.1640 5.4295 0.27 0.06 3Y 5.5219 5.3490 5.6402
Slide 11: Base effects will be unfavorable in the next five readings; Headline could jump
Base effects will be unfavorable in the next five readings; Headline could jump 11
Slide 12: USD/Asia sharply lower for the month as regional outlook improves
USD/Asia sharply lower for the month as regional outlook improves DXY remains range-bound as safe-haven demand is offset by US tariff uncertainty 12
Slide 13: Financial Performance FY2025
Financial Performance FY2025
Slide 14: Topline growth underpinned by expanding customer base and improving margins
Topline growth underpinned by expanding customer base and improving margins Customer Growth Net Interest Margin (in #, Mn) 18.6 6.4% 17.0 6.0% 5.5% 14.8 4.8% 4.5% 4.6% 12.1 10.2 4.4% 7.1 Industry* 10% 46 bps 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 Net Revenues Net Revenues (exclu
Slide 15: UnionBank FY25 net income at P10.0Bn
UnionBank FY25 net income at P10.0Bn 4Q25 net income ended at P3.5Bn, up 9% QoQ and sustaining the upward trajectory throughout the year Earnings for the second half of the year more than doubled to P6.8Bn, up 108% versus first half FY25 net income is down 17% YoY due to one-time costs — largely boo
Slide 16: Removing the noise, UBP Parent performance remains strong
Removing the noise, UBP Parent performance remains strong, anchored on its consumer portfolio Strong parent bank performance High-yielding consumer products Citi portfolio delivered solid results, 1 2 3 weighed down by one-offs drive group Net Credit Margin greatly contributing to consumer performan
Slide 17: NIM continues to improve, supported by lower funding costs
NIM continues to improve, supported by lower funding costs Net Interest Income Net Interest Margin (in PHP, Bn) Cost NIM Yield YoY 11% YoY 8.6% 8.6% 8.5% 8.5% 8.5% 17bps 64.2 58.0 6.0% 6.3% 6.4% 6.4% 6.4% 46bps -2.6% -2.2% -2.1% -2.1% -2.0% 63bps FY24 3M25 6M25 9M25 FY25 Annualized Year-to-Date 8% Y
Slide 18: Higher yielding credit cards is the main driver of loan growth
Higher yielding credit cards is the main driver of loan growth Gross Loans, OSB Loan Mix (in PHP, Bn) Industry’s Consumer Loans ~ 23% Institutional Retail (Parent) CSB, UD, Other Subs Based on 9M25 BSP Data 4% YoY Cards, 24% 2% QoQ 534 548 Consumer, 528 521 532 Institutional, YoY 61% Salary Loans, 1
Slide 19: Improving funding mix on the back of strong CASA growth
Improving funding mix on the back of strong CASA growth Total Deposits (Consolidated), OSB CASA Deposits (Consolidated), OSB (in PHP, Bn) (in PHP, Bn) CASA High-Cost CASA CASA to Deposit 9% YoY 80% 800 68% 4% QoQ 66% 66% 65% 64% 70% 734 700 708 676 684 683 YoY 12% YoY 60% 600 10% QoQ 234 2% 500 500
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 FY24 FY25 YoY Fees from Customer transactions, Wealth, and Banca posted strong growth 4% YoY Parent Customer 19.8 13.6 15.1 11% 19.0 YoY Transac
Slide 21: OPEX growth driven by investments in IT
OPEX growth driven by investments in IT Operating Expense Cost-to-income Ratio (in PHP, Bn) 8% YoY 47.9 59% 59% 59% 58% 57% 44.3 11% YoY 3% QoQ 11.2 11.5 11.8 12.1 12.4 4Q24 1Q25 2Q25 3Q25 4Q25 FY24 FY25 FY24 3M25 6M25 9M25 FY25 Quarter-to-Date Year-to-Date Annualized Year-to-Date 21
Slide 22: Credit costs beginning to normalize
Credit costs beginning to normalize Credit Cost – Annualized (Year-to-date) Parent Others Parent Consumer CSB & Other Subs UnionDigital 88bps 4.2% 4.3% 0.4% 3.9% 0.3% 3.4% 0.5% 0.3% 3.5%1 0.5% 0.4% 0.2% 1.0% 0.5% 0.2% 3.2% 3.0% 2.7% 2.4% 2.0% 0.2% 0.2% 0.5% 0.4% 0.3% FY24 3M25 6M25 9M25 FY25 1 Credi
Slide 23: Asset quality and coverage ratios show sustained improvement
Asset quality and coverage ratios show sustained improvement NPL Ratio UBP Industry FY24 FY25 Parent 5.9% 5.9% 7.2% 6.8% Parent Consumer 6.2% 5.7% 3.5% 4.0% 3.3% 3.0% UnionDigital 22.9% 12.6% 1.4% 1.3% FY24 - Gross NPL FY25 - Gross NPL FY24 - Net NPL FY25 - Net NPL NPL Cover UBP Industry FY24 FY25 9
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% 15.9% 15.6% 15.5% 14.9% 14.9% 15.1% 15.0% 14.6% 14.9% 15.1% 15.0% Regulatory Minimum Regulatory Regu
Slide 25: Other items
Other items Regular Cash Dividend Declaration 1 The Board approved a regular cash dividend of Php1.00 per common share, payable from unrestricted retained earnings as of December 31, 2025. Record date is March 16, 2026. Payment date is March 23, 2026 Adoption of Dividend Policy (Effective 2027) 2 Th
Slide 26: Key takeaways and outlook
Key takeaways and outlook Key takeaways Outlook Net Revenues will continue to expand Second-half earnings more than doubled, up Net revenues are expected to continue expanding into 108% compared to first-half of the year. Net 1 2026, supported by solid business drivers throughout 2025. 1 income impr
Slide 27: Thank you!
Thank you! For comments and queries, contact us via: investorrelations@unionbankph.com Strictly Private & Confidential
Union Bank of the Philippines — FY2025 Earnings Presentation on 6ix