Union Bank Of The Philippines · PSE:UBP
Union Bank Of The Philippines — Q1 2026 Earnings Presentation
26 slides from Union Bank Of The Philippines's earnings presentation, May 11, 2026
Slide 1: Analysts Briefing 11 May 2026
Briefing 11 May 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 Jhonson L. Sia 1. Macroeconomic and Industry Outlook Treasurer and Global Markets Head Dmi Lozano 2. Financial Performance Chief Financial Officer
Slide 4: Macroeconomic and Industry Outlook
Macroeconomic and Industry Outlook
Slide 5: Israel-Iran war continues; Ceasefire hopes up
Israel-Iran war continues; Ceasefire hopes up • Oil remains near the 100/bbl on Strait of Hormuz closure • Ceasefire headlines dominating market action o US equities hit new all-time highs, still led by tech • US rate cut odds evaporate on expected impact to inflation 5
Slide 6: 2026 expected policy path reverses on oil spike
2026 expected policy path reverses on oil spike February 24 Current 6
Slide 7: Treasuries settling near top end of range
Treasuries settling near top end of range 7
Slide 8: Philippine Credit shrugs off outlook downgrades; back to pre-war spreads
Philippine Credit shrugs off outlook downgrades; back to pre-war spreads 8
Slide 9: BSP hikes rates to 4.50%; Signals more to come
BSP hikes rates to 4.50%; Signals more to come • Gov. Remolona commits to inflation fight; More hawkish than market expectations o “Once we start raising the policy rate, we’re likely to raise it again” o “We will do what’s necessary to contain inflation, and at the moment, that seems like a success
Slide 10: BVAL curve (May 4) much higher due to hike expectations
BVAL curve (May 4) much higher due to hike expectations PESO GS BVAL RATES Peak to Pre-War to Tenor Pre-War Peak Current Current Current 3M 4.4036 5.0120 4.6423 -0.37 0.24 6M 4.5042 5.0712 4.8566 -0.21 0.35 1Y 4.5751 5.1902 5.2555 0.07 0.68 2Y 5.1460 6.1270 6.0600 -0.07 0.91 3Y 5.3180 6.3860 6.4579
Slide 11: USDPHP prints new historical high at Php61.750 on energy vulnerability
USDPHP prints new historical high at Php61.750 on energy vulnerability • Peso headwinds remain with combination of monetary policy tightening, rising inflation (7.2% April), and possible lackluster Q1 GDP • Higher for longer narrative for the Fed kept the dollar supported on dips, markets have price
Slide 12: Peso underperforms USD/Asia peers in April on oil import dependence
Peso underperforms USD/Asia peers in April on oil import dependence DXY retreats from 100 level but stays firm near 98 on hawkish Fed repricing 12
Slide 13: Financial Performance 3M26
Financial Performance 3M26
Slide 14: Recall: UBP's 2026 Outlook
Recall: UBP’s 2026 Outlook 11 Net Revenues will continue to expand 21 Credit costs trending toward steady-state levels 31 Balance sheet well-positioned to support growth 41 Transition from stabilization to earnings expansion 14
Slide 15: UnionBank 1Q26 net income at P3.8 Bn
UnionBank 1Q26 net income at P3.8 Bn 1Q26 net income ended at P3.8Bn, up 9% QoQ and 167% YoY Earnings momentum from 2H25 continued into 1Q26, growth was driven by core operations, despite trading losses from market volatility Current performance reflects the benefits of actions taken in 2025 to stre
Slide 16: Sustained topline growth driven by customer expansion and margin improvement
Sustained topline growth driven by customer expansion and margin improvement Customer Growth Net Interest Margin (in #, Mn) 8% YoY 34 bps 18.6 18.9 6.4% 6.4% 6.7% 17.0 17.6 6.0% 14.8 5.5% 4.6% 4.8% 12.1 10.2 4.4% Industry* 2021 2022 2023 2024 2025 3M25 3M26 2021 2022 2023 2024 2025 3M25 3M26 Net Rev
Slide 17: 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 8.6% 8.6% 8.5% 8.5% 8.5% 11bps 0% QoQ 6.3% 6.4% 6.4% 6.4% 6.7% 34bps 9% YoY 16.7 16.8 16.8 15.9 16.2 -2.2% -2.1% -2.1% -2.0% -1.8% 45bps 15.4 15.4 3M25 6M25 9M25 FY25 3M26 Annualized Y
Slide 18: Growth is driven by institutional, credit cards and salary loans
Growth is driven by institutional, credit cards and salary loans 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 8% YoY Cards, 24% 3% QoQ 565 533 548 Consumer, 522 533 Institutional, YoY 60% Salary Loans,
Slide 19: Deposit growth sustained
Deposit growth sustained Total Deposits (Consolidated), OSB CASA Deposits (Consolidated), OSB (in PHP, Bn) (in PHP, Bn) CASA High-Cost CASA CASA to Deposit 10% YoY 80% 800 2% QoQ 68% 66% 65% 64% 65% 70% 734 752 700 708 684 683 YoY 8% YoY 60% 600 2% QoQ 234 262 14% 500 500 490 50% 230 238 252 454 456
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 3M25 3M26 YoY Fees from Customer transactions, and Banca posted strong growth 6.0 18% Parent Customer QoQ 3.3 3.4 0.6 Transactions 4% 23% YoY 5.
Slide 21: Cost to Income shows improving trend
Cost to Income shows improving trend Operating Expense Cost-to-income Ratio (in PHP, Bn) 0% QoQ 8% YoY 12.4 12.5 12.5 59% 11.8 12.1 59% 59% 11.5 11.5 58% 57% 1Q25 2Q25 3Q25 4Q25 1Q26 3M25 3M26 3M25 6M25 9M25 FY25 3M26 Quarter-to-Date Year-to-Date Annualized Year-to-Date 21
Slide 22: Credit cost has stabilized
Credit cost has stabilized Credit Cost – Annualized (Year-to-date) Parent Subsidiaries 4.2% 4.3% 67bps 3.9% 3.9% 0.8% 0.9% 0.8% 3.2% 1.2% 0.5% 3.4% 3.4% 3.1% 2.7% 2.7% 3M25 6M25 9M25 FY25 3M26 22
Slide 23: Asset quality and coverage ratios continuous to improve
Asset quality and coverage ratios continuous to improve NPL Ratio UBP Industry (FY25) Net NPL 3M25 3M26 Parent 2.7% 2.5% 6.9% 6.7% Parent Unsecured 1.6% 1.3% 3.3% 3.3% 3.6% 3.1% CSB and Other Subs 6.4% 5.5% 1.4% 1.5% UnionDigital Personal Loans 11.2% 0.3% 3M25 - Gross NPL 3M26 - Gross NPL 3M25 - Net
Slide 24: Sufficient capital ratios to support growth and current landscape
Sufficient capital ratios to support growth and current landscape Common Equity Tier 1 Capital Ratio Group (CET1) Common Equity Tier 1 Capital Ratio Parent (CET1) 14.9% 14.9% 15.1% 15.0% 14.6% 14.9% 15.1% 15.0% 13.8% 14.0% Regulatory Regulatory Minimum Minimum 8.5% 8.5% 3M25 6M25 9M25 FY25 3M26 3M25
Slide 25: Key takeaways and outlook
Key takeaways and outlook Key takeaways Outlook Net income reached P3.8 billion, up 167% Topline momentum is expected to continue, supported by year-on-year. Earnings continued to grow 1 recurring income, alongside expansion of the customer base 1 sequentially, from P3.2 billion in 3Q25 to P3.5 and
Slide 26: Thank you!
Thank you! For comments and queries, contact us via: investorrelations@unionbankph.com Strictly Private & Confidential
Union Bank of the Philippines — Q1 2026 Earnings Presentation on 6ix