Union Bank of the Philippines has announced plans to inject an additional PHP 1.6 billion into its digital banking arm, UnionDigital Bank, to support “ongoing business operations and allow it to deliver sustainable growth”.
In a filing with the Philippine Stock Exchange, the Aboitiz-led bank revealed that its board of directors approved the capital infusion during a meeting held on 23 September, subject to regulatory approvals.
UnionBank has injected capital into UnionDigital Bank multiple times, with notable infusions including PHP 2 billion in 2022, PHP 900 million in 2023 among others.
It is among the six digital banks licensed by the Bangko Sentral ng Pilipinas (BSP), which includes UNO Digital Bank, GoTyme, Maya Bank, Overseas Filipino Bank, and Tonik Bank.
Earlier, the BSP revealed that two of these digital banks had achieved profitability but did not disclose which ones.
Subsequently, UnionDigital confirmed that it is one of the profitable entities, reporting over PHP 5 billion in revenue last year, largely driven by increased deposits and loans.
In July, UnionDigital underwent a leadership change, appointing Danilo “Bong” Mojica II as President and CEO, to succeed Henry Rhoel Aguda.
BSP had recently announced plans to allow up to ten digital banks to operate in the Philippines starting in 2025, a move expected to heighten competition in the sector.
Featured image credit: Edited from Wikipedia
