Union Bank of the Philippines plans to inject up to PHP 1.5 billion in additional capital into its thrift bank subsidiary, City Savings Bank Inc..

The bank intends this move to bolster the subsidiary’s growth and support its ongoing business operations.

In a disclosure to the Philippine Stock Exchange, UnionBank announced that its board of directors approved the capital infusion during a special meeting on October 8.

The transaction is still subject to the necessary regulatory approvals.

CitySavings, which was founded in 1965, has a strong presence in the mass market segment, particularly in providing salary loans to public school teachers and government employees.

In recent years, the thrift bank has been expanding its customer base and digital lending capabilities and currently operates more than 140 branches nationwide.

The capital injection is part of UnionBank’s broader strategy to strengthen its subsidiaries and sustain growth across its retail and digital banking businesses.

The Aboitiz-led bank has been investing heavily in its digital transformation and financial inclusion initiatives while maintaining a solid capital position to support the growth of both its core and subsidiary operations.

Despite a reported 35% drop in net income to PHP 3.3 billion in the first half of the year, UnionBank’s total revenues increased by 9.2% to PHP 39.7 billion, driven by growth in net interest income and fee-based earnings.

Featured image by wirestock via Freepik.