Union Bank of the Philippines (UnionBank) is ready to inject fresh capital into UnionDigital Bank if the Bangko Sentral ng Pilipinas (BSP) rejects its request for regulatory relief tied to the integration of the two banks.

“It’s actually just a procedural item,” UnionBank President and CEO Ana Maria Aboitiz-Delgado told reporters on Wednesday, according to BusinessWorld.

She said the capital is fully allocated within UnionBank.

“The capital is in UnionBank, so we’re ready to infuse it anytime,” she added.

Background to the Relief Request

Last week, UnionBank asked the BSP to exempt it from injecting more capital into UnionDigital, arguing that the planned integration would make such a transfer unnecessary.

UnionBank also asked the BSP to stop deducting its equity investment in UnionDigital from its regulatory capital ratios.

UnionBank aims to complete the integration by April 2027 by buying certain assets and assuming certain liabilities of UnionDigital.

It is also absorbing its fintech unit, UBX. Both moves need regulatory approval.

Not About Losses, CEO says

Aboitiz-Delgado said the consolidation is meant to strengthen UnionBank’s digital offerings and is not a response to UnionDigital’s lack of profitability.

UnionDigital’s net loss narrowed to PHP 2.19 billion in 2025, from PHP 3.13 billion in 2024, BusinessWorld reported.

The integration has already led to job cuts at UnionDigital and UBX.

UnionBank has said UnionDigital customers can keep using their accounts and app without interruption during the transition.

Featured image: Edited by Fintech News Philippines based on images by topntp26 via Magnific and Union Bank of the Philippines via its website.