Aboitiz-led Union Bank of the Philippines (UnionBank) is raising up to ₱76.35 billion through issuances from both its Euro Medium Term Note (EMTN) Program and Peso Bonds Program.

In a disclosure to the Philippine Stock Exchange, the bank said its board has approved the planned issuances as well as an injection of additional capital into UnionDigital Bank Inc.

The bank plans to issue up to $800 million or its equivalent in other foreign currencies out of its EMTN Program established way back on Nov. 14, 2017, and updated on Oct. 2, 2020, with current program size of $2 billion and a remaining balance of $1.2 billion.

Meanwhile, the UnionBank board green-lighted an increase in the bank’s Peso Bonds Program from ₱50 billion to ₱100 billion and the issuance of up to ₱30 billion out of the program.

“The bank has yet to establish the timetable and other details for these issuances,” UnionBank noted.

Also approved is a planned infusion of additional capital of up to ₱1.2 billion in UnionDigital to support its ongoing business operations and enable it to deliver sustainable growth, subject to applicable regulatory approvals.

UnionBank expects its profits to continue growing this year after reporting strong growth in net income for 2024 on the back of record revenues.

“Our retail-focused strategy allowed us to book record-high top line revenues. We should see the continued improvements in our net income moving forward, as we realize the synergies brought about by our integrated consumer operations,” UnionBank Chief Financial Officer Manuel R. Lozano said.

The bank said it generated ₱12 billion in net income in 2024, an increase of 31 percent year-on- year, supported by a strong consumer business which now has a retail customer base of 17 million, margin expansion, and higher fee-based revenues.

Consumer loans now account for 61 percent of the total loan portfolio, nearly three times higher than the industry average. This is diversified across credit cards, mortgage loans, personal/salary loans, and vehicle loans.

Net revenues reached a new high of ₱79.5 billion, 12.4 percent higher year-on-year. Net interest income increased by 11.6 percent to ₱58 billion as the bank’s net interest margin expanded by 49 basis points to six percent—among the highest in the industry.

UnionBank’s fee income as a proportion of its assets is nearly double the Philippine banking industry’s average, fueled by increasing customer transactions such as bills payments and funds transfers, as well as interchange and other card-related fees.

With the bank’s continued investments in customer engagement programs, its 2024 operating expenses grew by only 1.4 percent versus the previous year to ₱44.3 billion.

“After completing the migration of Citi-branded consumer accounts early last year, we continue to invest heavily to ensure that we elevate customer experiences,” said UnionBank President and CEO Ana Aboitiz Delgado.

She added that “we are committed to deliver differentiated product offerings and experiences to our now 17 million customers across all of their preferred customer touchpoints. I am confident that our renewed focus on customer-centered innovation will allow us to deliver greater value this year and in the years to come.”