UnionBank to absorb UnionDigital, UBX businesses

Keisha Ta-Asan - The Philippine Star October 25, 2026 | 12:00am MANILA, Philippines — Union Bank of the Philippines is moving to absorb the businesses of its digital banking and financial technology subsidiaries into its parent operations, as the Aboitiz-led lender seeks to streamline its operations and strengthen its digital banking services.

In a disclosure to the Philippine Stock Exchange, UnionBank said its board of directors approved the planned integration of UnionDigital Bank and fintech subsidiary UBX into the parent bank, subject to regulatory approvals from the Bangko Sentral ng Pilipinas (BSP) and other authorities.

The move is part of the bank’s broader strategy to focus on its core businesses, improve operational efficiency and consolidate its digital capabilities under a single banking platform. UnionDigital operates as the group’s digital banking arm, while UBX focuses on fintech solutions aimed at expanding access to financial services beyond traditional bank branches.

UnionBank president and CEO Ana Delgado said the integration would allow the bank to serve more customers while maximizing the capabilities developed by its subsidiaries. “By integrating UnionDigital and UBX with UnionBank, we are strengthening our digital proposition, creating greater efficiencies and accelerating our ability to serve more Filipinos at scale,” Delgado said.

She said the planned consolidation would also give customers access to a broader range of banking products and financial solutions through UnionBank’s existing digital platforms. The bank assured customers that services would remain available while the proposed integration undergoes regulatory review.

“During the transition process, we are committed to ensure the least amount of disruption for our customers,” Delgado said. “We will carefully guide their transition into UnionBank at the appropriate time.” The bank has not disclosed a timetable for completing the integration, which remains subject to the necessary regulatory clearances.

The consolidation plan comes as UnionBank reported a 53-percent increase in net income to P9.9 billion in the first nine months, supported by stronger interest earnings, higher fee income and improved operating efficiency. Net revenues increased by eight percent to P65.5 billion, reflecting wider lending margins and higher transaction income from its expanding retail customer base, which exceeded 19.5 million.

Net interest income rose by nine percent to P51.9 billion. The bank’s net interest margin improved by 34 basis points to 6.9 percent. UnionBank attributed the improvement partly to a five-percent increase in current account and savings account deposits, a relatively low-cost source of funding for banks.

Consumer loans accounted for 62 percent of its total loan portfolio, nearly three times the industry average, reflecting the bank’s strong concentration in retail lending. Meanwhile, non-interest income grew by five percent to P13.6 billion, with fees and commissions climbing by the same rate to P11.9 billion.

Income from wealth management and bancassurance surged by 52 percent and accounted for 18 percent of total fee income.