Union Bank of the Philippines, or UnionBank, has been authorized to increase its capital stock totaling P60.3 billion from P35.3 billion, the bank said Wednesday based on a decision by the Securities and Exchange Commission.
"The increase in the authorized capital stock will be used to support growth and for general corporate purposes," UnionBank said in a disclosure to the Philippine Stock Exchange.
December 5 decision
The bank shared the commission made the decision on the expanded capital stock on 5 December.
In exact figures, the capital stock grew from P35,307,852,380 to P60,307,852,380.
The new total capital stock is divided into common shares summed up at 5,030,785,238 units at par value of P10 each, and preferred shares with 100,000,000 units at par value of P100.
Biggest bond program so far
UnionBank recently raised P18.168 billion from its dual peso fixed-rate bond issuance, the bank's biggest bond program so far under its P50-billion bonds program.
These were announced after the bank posted a net income of P8.1 billion in the first nine months with a loan portfolio growth of 18 percent.
Meanwhile, operating costs surged by 63 percent, following UnionBank's acquisition of Citi's credit card business and continuous enhancement of its digital bank called UnionDigital Bank.
Top, fastest profitable in Asia
In an interview with the Daily Tribune, UnionDigital president Henry Aguda said his team aims to establish UnionDigital as the top digital bank in the country and possibly the fastest profitable one in Asia.
He said UnionBank's clients have increased to over P10 million which its digital arm could tap to help accelerate financial inclusion amid the government's campaign for digital transformation.
"Out of around 400 digital banks in the world, only 20 percent of them earn profits within two years and a half on the average. However, an Indonesian bank was able to achieve that faster in one year and a half. We plan to surpass that record," Aguda said.