Union Bank of the Philippines is set to inject as much as P1.5 billion in additional capital into its thrift bank arm, City Savings Bank Inc., to bolster the subsidiary’s growth and support its ongoing business operations.
In a disclosure to the Philippine Stock Exchange, UnionBank said its board of directors approved the capital infusion during a special meeting held on Oct. 8.
The board ‘approved the infusion of additional capital of up to P1.5 billion in City Savings Bank, a subsidiary of the bank, to support growth and ongoing business operations,’ the lender said.
The capital infusion will still be subject to the necessary regulatory approvals.
CitySavings, known for its strong presence in the mass market segment, particularly in providing salary loans to public school teachers and government employees, has been expanding its customer base and digital lending capabilities in recent years.
Founded in 1965, the thrift bank currently has more than 140 branches nationwide.
The move comes as part of UnionBank’s broader strategy to strengthen its subsidiaries and sustain growth across its retail and digital banking businesses.
UnionBank, which is part of the Aboitiz Group, has been investing heavily in digital transformation and inclusive finance initiatives, while maintaining a solid capital position to support the growth of its core and subsidiary operations.
UnionBank president and CEO Ana Delgado earlier said the bank is bullish on its performance in the second half as stronger revenues and easing credit costs would drive growth.
The Aboitiz-led bank saw its net income plunge by 35 percent to P3.3 billion in the first half from P5.1 billion a year ago.
However, it reported a 9.2 percent year-on-year increase in total revenues to P39.7 billion, driven by strong growth in net interest income and fee-based earnings.