UNION BANK of the Philippines, Inc. (UnionBank) will inject P1.6 billion in fresh capital into its digital banking arm to support its expansion, it said on Tuesday.
“Please be informed that the Board of Directors of Union Bank of the Philippines, at its meeting held on Sept. 23, approved the infusion of additional capital of up to P1.6 billion in UnionDigital Bank Inc. to support UnionDigital’s ongoing business operations and allow it to deliver sustainable growth, subject to the applicable regulatory approvals,” the listed Aboitiz-led bank said in a disclosure to the stock exchange.
This marks UnionBank’s fourth capital injection into UnionDigital, with the last being a P1.8-billion infusion in November 2023.
In October 2023, UnionBank also made an equity investment of P900 million in UnionDigital to support its growth and boost its capital position.
UnionDigital is one of the six BSP-licensed online-only banks in the country. It secured its license in July 2021 and began operating in July 2022.
The digital bank’s total assets stood at P21.87 billion as of March 31, down by 2.67% year on year, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.
Its net loans declined by 37.59% to P8.08 billion in the first quarter, with deposits likewise down by 5.68% to P16.52 billion.
UnionDigital’s total equity was at P4 billion at end-March, up by 2.56% year on year.
The digital lender’s net interest margin was at 11.945%.
Meanwhile, its listed parent UnionBank saw its attributable net income rise by 20.12% year on year to P3.02 billion in the second quarter. This brought its net profit for the first semester to P5 billion, down by 17.18% from the previous year.
UnionBank’s shares dropped by 10 centavos or 0.25% to close at P39.40 apiece on Tuesday. — A.M.C. Sy
UnionBank to infuse P1.6 billion in fresh capital into UnionDigital
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