UNION BANK of the Philippines, Inc. (UnionBank) will infuse P900 million in fresh capital into its online lender UnionDigital Bank, it said on Monday.
The capital infusion was approved at UnionBank’s board meeting on June 23, it said in a disclosure to the local bourse on Monday.
The additional capital for UnionDigital will “support business growth,” it said.
UnionDigital was granted a digital banking license by the Bangko Sentral ng Pilipinas in July 2021. It began operating in July 2022.
It disbursed P3 billion in consumer loans in April from P2.8 billion in March.
In 2022, the digital lender recorded P4.8 billion in loans and P9 billion in deposits.
Meanwhile, its parent company UnionBank’s net income went up 30% year on year in the first quarter to P3.4 billion amid gains from its acquisition of Citigroup, Inc.’s consumer business in the Philippines.
UnionBank’s shares closed at P75 apiece on Thursday, up by 50 centavos or 0.67%. — AMCS