MANILA, Philippines — Union Bank of the Philippines is infusing an additional P1.6 billion in capital to support the ongoing business operations and sustain the expansion of UnionDigital Bank Inc.
In a disclosure to the Philippine Stock Exchange, the Aboitiz-led bank said the additional capital infusion was approved by its board of directors last Sept. 23.
“Please be informed that the board of directors of UnionBank, at its meeting held on Sept. 23, approved the infusion of additional capital of up to P1.6 billion in UnionDigital to support ongoing business operations and allow it to deliver sustainable growth,” the lender said.
However, the move will be subject to the applicable regulatory approvals, the bank said.
This is the fourth time that the bank injected additional capital to its digital banking arm. In November last year, Unionbank infused P1.8 billion into UnionDigital to support its operations.
In June 2023, Unionbank also beefed up the capitalization of its digital banking unit through the infusion of P900 million in additional equity.
The bank also pumped P2 billion in additional capital to the wholly owned subsidiary in June 2022.
UnionDigital Bank is one of the six entities granted digital banking licenses by the Bangko Sentral ng Pilipinas (BSP).
Aside from UnionDigital Bank, the Monetary Board has also granted digital bank licenses to UNO Digital Bank, GoTyme, Maya Bank, Overseas Filipino (OF) Bank and Tonik Bank.
Earlier in July, the digital bank announced that Henry Rhoel Aguda stepped down as the president and CEO of UnionDigital. He was replaced by Danilo “Bong” Mojica II.
Last year, the digital lender saw its revenue grow to over P5 billion mainly driven by higher deposits and loans.