Should I buy Union Bank of the Philippines stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Union Bank of the Philippines for over three years. Every month, hundreds of thousands of users in the Philippines trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Union Bank of the Philippines.

What Is Union Bank of the Philippines?

The Union Bank of the Philippines Stock Price

The price of Union Bank of the Philippines stock is declining this week. Trading at ₱32.05 per share, the stock has slipped by ₱0.15 (-0.47%) over the past 24 hours and is down for the week, reaching its 52-week low. Union Bank of the Philippines holds a market capitalization of ₱106.79 billion, with an average 3-month trading volume of 90,440 shares. The P/E ratio stands at 9.30, alongside a dividend yield of 3.12% and a beta of 0.70, reflecting lower volatility than the market. With recent strategic shifts and a strong position in digital consumer banking, the stock could present an interesting opportunity for forward-looking investors.

Our full analysis on the Union Bank of the Philippines stock

Having thoroughly reviewed Union Bank of the Philippines’s latest financial disclosures and analyzed the stock’s performance over the past three years, we have harnessed multiple sources of analysis—including fresh financial ratios, technical indicator data, up-to-date market context, and a dynamic comparison with sector peers—using our proprietary quantitative models. This multifaceted approach ensures every angle of opportunity and risk is weighed. So, why might Union Bank of the Philippines stock once again become a strategic entry point into the financial and tech-driven banking sector in 2025?

Recent performance and market context

Union Bank of the Philippines (UBP) has recently traded at ₱32.05 per share, reflecting a marginal decline for the day but positioning the stock near its 52-week low—a level often viewed by sophisticated investors as an actionable technical base. Notably, the current price is markedly below its 12-month high of ₱43.80, opening a potential upside of roughly 32% towards consensus analyst targets. Over the last quarter, stabilization in UBP’s market capitalization to around ₱106.8 billion and a steady three-month average volume demonstrate robust investor interest, even as overall market volatility has ticked higher. Among the positive recent events, UBP’s seamless leadership transition in January 2025—with Ana Maria Aboitiz Delgado now at the helm—and the successful expansion of its digital banking client base to over 17.6 million retail customers, have affirmed market confidence in the group’s growth trajectory. The national backdrop is equally supportive: the Philippine banking sector, buoyed by resilient consumer demand, increased digital adoption, easing inflation (now at multi-year lows), and the Central Bank’s prudent policy signals, is well-positioned for cyclical recovery. UBP’s innovative posture aligns perfectly with these sector-wide tailwinds.

Technical analysis

From a technical standpoint, UBP is demonstrating hallmark signals that astute investors watch for when timing entries. The stock’s RSI (14-day) sits at 44.72, just below neutral, suggesting that UBP is not yet overbought and may be ripe for accumulation as negative sentiment unwinds. The MACD (12,26,9) remains only slightly negative, but is within reversal range—an early sign of potential bullish divergence, especially as the stock consolidates at strong support near ₱32, its one-year low. UBP is now marginally below its key moving averages (20, 50, 100, and 200 days), yet such convergence historically precedes strong price momentum when combined with supportive fundamentals. The technical picture is thus constructive: a clear support zone at ₱32 may attract contrarian buy-side flows, while bullish crossovers could quickly reassert the medium-term uptrend. For those with a keen eye on structural recoveries, these technical signals imply a possible transition from base-building to breakout.

Fundamental analysis

UBP’s fundamentals remain deeply compelling. Despite reporting a Q1 2025 decline in net income (₱1.4 billion, down 30% YoY due to one-off tax write-offs), the bank exhibited a remarkable top-line expansion: revenue rose 8.4%, net interest income advanced by 14.4%, and fee-based income posted a robust 21.3% gain—highlighting increasingly diversified revenue generation. The net interest margin of 6.3%, a healthy outperformance both locally and regionally, underscores pricing power and operational efficiency. On valuation grounds, UBP trades at a discount: with a P/E ratio near 9.3 and price-to-book of 0.55, both figures are highly attractive versus peer averages, offering a substantial margin of safety. The dividend yield of 3.12%—backed by a ₱1.00 annual payout—reinforces UBP’s status as a rare combination of growth and income. Strategically, the bank’s dominance in consumer banking (62% of its loan mix) and sector leadership in digital transformation set it apart. Backed by the influential Aboitiz Group, UBP continues to invest in digitalization, product innovation, and ESG initiatives, which further cement its reputation as a forward-looking leader in Philippine finance.

Volume and liquidity

Trading activity in UBP remains elevated, with a three-month average volume of 90,440 shares, reflecting consistent market interest and ample liquidity. This dynamic not only signals pronounced market confidence, but also ensures investors—large and small—can enter or exit positions efficiently and without undue price impact. UBP’s free float stands at 17.2%, supporting both dynamic valuation shifts and regular turnover, while also providing institutional participants with sufficient access. High liquidity is often a hallmark of resilient, investable stocks; in UBP’s case, it enhances the stock’s attractiveness for both tactical traders and long-term portfolio builders.

Catalysts and positive outlook

Looking forward, UBP is poised for a phase of renewed outperformance. Several imminent catalysts support a bullish stance:

• The upcoming Q2 2025 results (due August 5, 2025) are widely expected to show normalization of net income as one-time charges abate, potentially triggering positive earnings surprises.
• UBP’s leadership in digital banking (with 17.6 million retail clients and growing) ensures it rides the powerful secular tide of fintech adoption sweeping the Philippine archipelago.
• Investment in ESG and digital transformation, recognized by the bank’s recent "Wealth Management Bank of the Year" award, brings operational excellence and enhanced market reputation.
• The successful rollout of fee-based products and consumer loan expansion is already translating into growing top-line contributions, mitigating traditional banking cyclicality.
• The launch of strategic bond programs and new partnerships will only further solidify a robust funding structure and open doors for new product innovations.

The macro environment further boosts UBP’s prospects. Lower inflation, favorable regulatory signals, and a digital-savvy, youthful population underpin increasing financial inclusion and institutional banking growth—key growth accelerators for UBP in the coming quarters.

Investment strategies

UBP offers a compelling thesis across all time frames:

• Short-term: For traders, entry near the ₱32-₱33 support band can enable swift gains if upcoming results and technical reversals materialize. Volume/price breakouts above the ₱33.04 (200-day MA) should be monitored as triggers.
• Medium-term: Investors seeking yield and growth can capitalize on UBP’s attractive dividends and fundamental momentum, positioning ahead of the expected earnings normalization and ahead of analyst price targets in the ₱42–₱43 range.
• Long-term: UBP is a foundational holding for those building quality exposure to Philippine financials. The bank’s unmatched digital footprint, innovative culture, and Aboitiz Group backing put it in pole position to capture sustained demographic and technological tailwinds in the Philippine market through 2030 and beyond.

The combination of low technical entry, robust liquidity, sector-leading dividends, discounted valuation, and a credible, innovation-driven management team means the stock currently seems to represent an excellent opportunity for either tactical accumulation or long-term wealth building.

Is it the right time to buy Union Bank of the Philippines?

Aggregate analysis strongly suggests that Union Bank of the Philippines is now entering a new phase of upside potential. The convergence of constructive technical signals at a clear support, sector-leading fundamentals, robust volume, and upcoming positive catalysts underscore why renewed consideration is justified. UBP’s focus on digital banking, formidable consumer finance presence, and commitment to innovation and ESG place it at the forefront of Philippine financial transformation. For investors seeking exposure to a dynamic banking sector, diversification, and sustainable value creation, UBP’s current valuation and prospective growth profile may well make it a strategic and timely purchase in 2025. In the Philippine market landscape, few stocks exhibit such a combination of resilient fundamentals, innovation-driven growth, and technical opportunity—confirming that Union Bank of the Philippines truly deserves the attention of discerning investors looking for the next phase of financial sector leadership.

How to buy Union Bank of the Philippines stock in the Philippines

Buying Union Bank of the Philippines stock online is secure, quick, and accessible with a regulated broker in the Philippines. Investors can either buy shares directly (spot buying) for long-term ownership, or choose Contracts for Difference (CFDs) to trade price movements with leverage. Spot buying provides actual ownership, while CFDs allow flexible strategies and enhanced exposure. Below, you’ll find a detailed broker comparison to help you pick the method that best fits your needs.

Spot buying

A cash purchase means buying and owning Union Bank of the Philippines shares through your broker account. Most Philippine brokers charge a fixed commission per order, typically around ₱100–₱250 or about $5.

Share Investment Gain Scenario Example

If the Union Bank of the Philippines share price is $0.56 (about ₱32.05), you can buy around 1,780 shares with a $1,000 stake, including a brokerage fee of around $5.

Gain scenario: If the share price rises by 10%, your shares are now worth $1,100. Result: +$100 gross gain, i.e. +10% on your investment.

This approach is ideal for investors seeking to hold shares for the long term and benefit from dividends.

Trading via CFD

CFD trading lets you speculate on Union Bank of the Philippines share price fluctuations without actually owning the shares. Fees include the spread (difference between buy and sell prices) and overnight financing if you keep your position open for more than a day.

CFD Gain Scenario: Union Bank of the Philippines

You open a CFD position on Union Bank of the Philippines shares, with 5x leverage.

This gives you a market exposure of $5,000.

✔️ Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

CFDs are well-suited for active traders seeking more flexibility and the potential to benefit from both rising and falling prices.

Final advice

Always compare brokers’ fees, minimum order sizes, and trading conditions before investing in Union Bank of the Philippines. The best option for you depends on your investment goals—whether you prefer the stability of share ownership or the flexibility of leveraged trading. To find the platform that fits you best, consult our broker comparison further down the page.

Our 7 tips for buying Union Bank of the Philippines stock

The latest news about Union Bank of the Philippines

Union Bank of the Philippines appoints Ana Maria Aboitiz Delgado as its new CEO in 2025. The appointment signals leadership renewal and a strong commitment to driving digital transformation and further consumer banking expansion. Delgado’s track record with the Aboitiz Group is expected to support execution of the bank’s digital and retail initiatives.

Q1 2025 results highlight robust revenue and fee-based income growth despite one-time profit impacts. Union Bank of the Philippines reported revenues of ₱19.4 billion (+8.4% year-on-year) and fee-based income of ₱3.7 billion (+21.3%). While net income declined due to tax adjustments and cost provisions, underlying bank operations, especially digital and consumer segments, showed strong expansion.

The bank maintains its lead as a digital transformation pioneer, with 17.6 million retail clients as of March 2025. This achievement underscores Union Bank of the Philippines’s ability to attract new customers and accelerate digital adoption in the rapidly evolving Philippine banking ecosystem, reinforcing its competitive position.

Analysts continue to rate Union Bank of the Philippines as a “Buy” with a consensus target price of ₱42.58. This target implies roughly 33% upside from current trading levels, reflecting positive sentiment tied to fee-income strength, digital growth, and overall sector resilience in the Philippine market.

Dividend policy remains stable with a ₱1.00 per share payout, currently yielding over 3%. Despite market volatility, the steady dividend is supported by a strong capital position and signals continued management confidence in the bank’s earnings generation and strategic direction.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.