UnionBank beefs up unit amid tight rivalry

Aboitiz-owned Union Bank of the Philippines (UnionBank) infused P1.2-billion capital to UnionDigital Bank and raised new funds from US dollar and peso-denominated bonds.

In a disclosure to the Philippine Stock Exchange on Monday, UnionBank said the three financing projects were approved by its board last 28 February.

UnionBank said the P1.2-billion capital infusion to UnionDigital Bank, its digital lending arm and one of the six digital banks in the country, will be used to support “sustainable” growth.

In a disclosure to the local bourse, UnionBank declared last month that the capital infusion to its digital arm stood at P1.4 billion as of 31 December 2024.

“We are committed to delivering differentiated product offerings and experiences to our now 17 million customers across all of their preferred customer touchpoints,” UnionBank chief executive officer Ana Aboitiz Delgado said.

Group profit surges 31%

UnionBank’s consolidated profit grew last year by 31 percent to P12 billion compared to the 2023 level, as its clients increased to 17 million.

Consumer loans expanded to 61 percent of the total portfolio or three times bigger than the industry average.

Aside from the support to UnionDigital Bank, the parent bank approved the issuance of medium-term notes of up to $800 million under its $2-billion Euro Medium Term Note Program.

UnionBank launched the program in November 2017 and updated it in October 2020.

The bank also green-lit the expansion of its peso bond program from P50 billion to P100 billion.

UnionBank said the details and dates for the capital infusion to UnionDigital and issuances of the debt instruments will be announced after the big bank has secured regulatory approvals.