UnionBank Bolsters Digital Arm with P1.8 Billion Capital Boost

Union Bank of the Philippines (UnionBank), under the Aboitiz Group, has announced plans to significantly boost its digital banking arm, UnionDigital Bank Inc., with an additional capital infusion of P1.8 billion. This strategic decision follows a prior investment of P900 million earlier this year and underscores UnionBank’s commitment to enhancing its digital lending services. UnionDigital’s CEO, Henry Aguda, expressed that this new funding is a testament to the parent bank’s faith in their growth strategy and solid financial performance. Despite a 20% decline in UnionBank’s consolidated net income in the first three quarters of 2023, the bank has seen a substantial increase in operating costs and net revenues, attributed mainly to its digital banking segment and the acquisition of Citi’s consumer business. With a robust asset base and liability portfolio, UnionBank’s latest move reflects its focus on expanding digital financial services, especially for underserved segments at the base of the income pyramid.