UnionBank board backs absorption of UnionDigital and UBX businesses
The proposed consolidation needs regulatory approval, and the bank has not set out a completion timetable.
UnionBank has secured board approval for a plan to fold the businesses of its subsidiaries UnionDigital Bank and UBX into its own operations, the Philippine lender told the stock exchange. The proposal still needs approval from the Bangko Sentral ng Pilipinas and other regulators.
The bank said it wants to combine its digital capabilities on one platform while concentrating on core businesses and improving efficiency. UnionDigital handles digital banking, while UBX develops financial technology services intended to extend access beyond branch networks.
Ana Delgado, UnionBank’s president and CEO, said the consolidation would make greater use of capabilities built by the subsidiaries and allow the lender to reach more customers. She also said customers would gain a wider choice of financial products through the bank’s digital platforms.
UnionBank said customers would retain access to services during the regulatory review. Delgado pledged to keep disruption to a minimum and guide customers through the transition. The bank gave no schedule for completing the process.
Separately, the lender reported first-nine-month net income of ₱9.9 billion, citing stronger interest and fee earnings alongside efficiency improvements. Revenue rose eight per cent to ₱65.5 billion, while its retail customer count surpassed 19.5 million.
Net interest income reached ₱51.9 billion, a nine per cent increase. Its net interest margin widened by 34 basis points to 6.9 per cent, an improvement the bank partly attributed to five per cent growth in current and savings account deposits.
