Union Bank Of The Philippines · PSE:UBP

Union Bank Of The Philippines — H1 2026 Earnings Presentation

23 slides from Union Bank Of The Philippines's earnings presentation, Aug 6, 2026

  1. Slide 1: 1H 2026 Earnings Results Briefing

    1H 2026 Earnings Results Briefing

  2. 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

  3. Slide 3: Agenda

    Agenda Dominic Banal 1. Macroeconomic and Industry Outlook Global Markets - Trading Head Dmi Lozano 2. Financial Performance Chief Financial Officer

  4. Slide 4: Macroeconomic and Industry Outlook

    Macroeconomic and Industry Outlook

  5. Slide 5: Israel-Iran war reignites oil concerns; FOMC holds

    Israel-Iran war reignites oil concerns; FOMC holds • Oil back below $80/bbl peace optimism • FOMC holds rates steady; 3 dissents in first action of Warsh era • Hammack, Kashkari and Logan vote for 25 bps hike • Hike expectation lower immediately after; Just 1.34 hikes expected for the year • US yiel

  6. Slide 6: Curve sits higher as market questions FOMC move

    Curve sits higher as market questions FOMC move 6

  7. Slide 7: PH USD sovereign curve shifts higher

    PH USD sovereign curve shifts higher PH SOVS CURRENT - 08/04 PH SOVS PEAK - 03/24 PH SOVS PRE-WAR - 02/27 UST CURRENT - 08/04 UST PEAK - 03/24 UST PRE-WAR - 02/27 PH PH UST UST 7

  8. Slide 8: Headwinds in the inflation battle as oil, wage hike and El Nino present risks

    Headwinds in the inflation battle as oil, wage hike and El Nino present risks • Despite 2 BSP hikes, PH core inflation still at 4.2% but headline eased in June to 6.2% vs. 6.4% prev • Due to easing oil price pressures and government measures to strengthen food supply • BSP to recalculate inflation o

  9. Slide 9: Bargain hunting ensues as peace talks see progress

    Bargain hunting ensues as peace talks see progress PESO GS BVAL RATES Pre-War Pre-War Peak Current Peak to to Tenor (2/27) (5/21) (8/03) Current Current 3M 4.4036 5.0590 5.0220 -0.04 0.62 6M 4.5042 5.4698 5.5271 0.06 1.02 1Y 4.5751 5.9792 5.9381 -0.04 1.36 2Y 5.1460 6.9107 6.6651 -0.25 1.52 3Y 5.318

  10. Slide 10: USD/PHP trades sub 61 level on easing Middle East tensions; lower crude oil prices

    USD/PHP trades sub 61 level on easing Middle East tensions; lower crude oil prices •USD/PHP fell back to the 60-per-dollar level, posting its strongest close in more than a month as crude oil prices have retreated to below $80 per barrel, their lowest level in more than two weeks, easing concerns ov

  11. Slide 11: Financial Performance 1H26

    TT) UnionBank Financial Performance 1H26

  12. Slide 12: Sustained revenues driven by customer expansion and healthy margins

    Sustained revenues driven by customer expansion and healthy margins Customer Growth Net Interest Margin (in #, Mn) 8% YoY 34 bps 19.3 6.6% 6.5% 6.9% 18.6 17.9 6.1% 17.0 5.5% 14.8 4.8% 12.1 4.6% 10.2 4.6% Industry* 2021 2022 2023 2024 2025 6M25 6M26 2021 2022 2023 2024 2025 6M25 6M26 Net Revenues Net

  13. Slide 13: UnionBank 1H26 net income at P6.9 Bn

    UnionBank 1H26 net income at P6.9 Bn First half net income ended at P6.9Bn, up 113% YoY Growth was driven by expansion in consumer lending, increase in CASA, and fee income from wealth and bancassurance Parent Bank sustained its performance and accounted for 96% of Group profit Net Income Return on

  14. Slide 14: NIM expansion driven by lower funding costs

    NIM expansion driven by lower funding costs Net Interest Income Net Interest Margin (in PHP, Bn) Cost NIM Yield YoY 8% YoY 8.7% 8.7% 8.7% 8.7% 8.6% 8bps 33.7 31.3 6.5% 6.6% 6.6% 6.9% 6.9% 34bps 2.2% 2.1% 2.1% 1.8% 1.8% 42bps 1% QoQ 6M25 9M25 FY25 3M26 6M26 Annualized Year-to-Date 16.7 16.8 17.0 16.2

  15. Slide 15: Credit Cards drive loan growth

    Credit Cards drive loan growth Gross Loans, OSB Loan Mix (in PHP, Bn) Industry’s Consumer Loans ~ 23% Based on 3M26 BSP Data Institutional Retail (Parent) CSB, UD, Other Subs 8% YoY 2% QoQ Cards, 25% 565 577 550 Consumer, 532 533 Institutional, 39% YoY 61% Salary Loans, 18% 131 135 125 Mortgage, 9%

  16. Slide 16: Deposit growth sustained year-on-year

    Deposit growth sustained year-on-year Total Deposits (Consolidated), OSB CASA Deposits (Consolidated), OSB (in PHP, Bn) (in PHP, Bn) CASA CASA to Deposit CASA High-Cost 8% YoY 80% 800 2% QoQ 68% 65% 64% 65% 65% 70% 752 700 734 735 708 683 YoY 7% YoY 60% 600 2% QoQ 234 262 257 500 50% 252 8% 500 490

  17. Slide 17: Customer transactions are driving recurring fee income

    Customer transactions are driving recurring fee income Non-Interest Income YTD Fees & Others (in PHP, Bn) (in PHP, Bn) Fees & Others Trading Income 6M25 6M26 YoY Fees from Customer transactions, and Banca posted strong growth 12% YoY Parent Customer 9.4 6.6 6.8 2% Transactions 0.1 60% 8.4 11% 0.2 Qo

  18. Slide 18: Improving trend in cost to income ratio

    Improving trend in cost to income ratio Operating Expense Cost-to-income Ratio (in PHP, Bn) 6% YoY 24.8 23.4 59% 59% 58% 57% 57% 2% QoQ 12.1 12.4 12.5 12.3 11.8 2Q25 3Q25 4Q25 1Q26 2Q26 6M25 6M26 6M25 9M25 FY25 3M26 6M26 Quarter-to-Date Year-to-Date Annualized Year-to-Date 18

  19. Slide 19: Stable credit costs

    Stable credit costs Credit Cost – Annualized (Year-to-date) Parent Subsidiaries 4.3% 10bps 3.9% 3.8% 0.9% 0.8% 3.2% 3.3% 1.2% 0.5% 0.6% 3.4% 3.1% 2.7% 2.7% 2.7% 6M25 9M25 FY25 3M26 6M26 19

  20. Slide 20: Asset quality and coverage ratios continue to improve

    Asset quality and coverage ratios continue to improve NPL Ratio* NPL Cover* 6M25 6M26 6M25 6M26 7.3% 6.8% 6.2% 5.8% 82% 77% 69% 68% 3.4% 3.4% 2.9% 2.4% Group Gross NPL Parent Gross NPL Group Net NPL Parent Net NPL UBP Parent *Industry Data 6M26 Gross NPL: 3.3% 6M25 Gross NPL: 3.3% 6M26 Net NPL: 1.4%

  21. Slide 21: Sufficient capital ratios to support asset growth

    Sufficient capital ratios to support asset growth Common Equity Tier 1 Capital Ratio Group (CET1) Common Equity Tier 1 Capital Ratio Parent (CET1) 14.9% 15.1% 15.0% 14.9% 15.1% 15.0% 14.5% 13.7% 13.9% 14.0% Regulatory Regulatory Minimum Minimum 8.5% 8.5% 6M25 9M25 FY25 3M26 6M26 6M25 9M25 FY25 3M26

  22. Slide 22: Key takeaways and outlook

    Key takeaways and outlook Key takeaways Outlook Net income reached P6.9 billion, up 113% Top-line is expected to grow. This will be supported 1 year-on-year. Parent Bank contributed 1 by recurring income and expansion in consumer 96% of Group profit. and transaction banking Net revenues grew to P43.

  23. Slide 23: Thank you!

    Earnings Results Briefing Thank you! For comments and queries, contact us via: investorrelations@unionbankph.com Strictly Private & Confidential

Union Bank of the Philippines (UnionBank) — H1 2026 Earnings Presentation on 6ix