UnionBank will inject PHP 1 billion in fresh capital into its thrift banking subsidiary, City Savings Bank, Inc. (CitySavings), to support its growth and ongoing operations, according to BusinessWorld.
UnionBank’s board approved the infusion during a meeting on August 28, though the move remains subject to regulatory approval.
The infusion follows a difficult year for CitySavings. The thrift bank booked a net loss of PHP 605.11 million in 2025, reversing the PHP 1.28 billion profit it posted in 2024, according to its own annual report.
Despite the loss, CitySavings has continued growing its balance sheet. It was the third largest thrift bank in the Philippines by assets as of end-March, with PHP 171.953 billion, according to the latest BSP data.
Its own balance sheet shows assets grew further to PHP 181.9 billion by June. Its total net loan portfolio stood at PHP 149.465 billion as of June, with a gross non-performing loan ratio of 9.2% and a coverage ratio of 35.58%.
Net interest margin was 7.5% in the first half of the year.
This marks UnionBank’s second capital injection into CitySavings in less than a year.
UnionBank’s board approved a PHP 1.5 billion infusion in October 2025, which it said at the time was meant to support the subsidiary’s growth and digital lending capabilities.
Featured image: Edited by Fintech News Philippines based on an image by Magnific.
