Union Bank to push P0.9-B down into UnionDigital
Union Bank [UBP 75.00 0.7%; 71% avgVol] [link] board approved the infusion of P0.9 billion of additional capital into UBP’s subsidiary, UnionDigital Bank, to “support business growth”.
UnionDigital Bank was granted a digital banking license by the BSP approximately one year ago. UBP’s share price is up marginally over the past year, but is actually down 23% from its Q1 high of around P97/share.
MB BOTTOM-LINE
UBP didn’t elaborate on what the money would exactly be used for, but UnionDigital Bank is one of just six BSP-licensed digital banks in the country. It makes sense to try to capitalize on that degree of exclusivity, especially considering how attractive digital banking services like Maya have been to foreign investors.
UBP has been aggressive over the past year in the traditional banking space, so I hope some of that bravado will carry over into the digital space where UBP has enjoyed a “pro-tech” reputation for many years. Shareholders have been patient, but the bank is a long way from its high and is nearing a retest of recent lows.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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