UnionBank to inject P1.5B in capital into City Savings – BusinessWorld Online
UNION BANK of the Philippines (UnionBank) will infuse P1.5 billion of fresh capital into its thrift banking arm City Savings Bank, Inc. (CSB) to support its operations.
The listed bank’s board of directors approved the move, which is subject to the applicable regulatory approvals, in a meeting on Oct. 8, it said in a disclosure to the stock exchange.
It said the capital injection will “support CSB’s growth and ongoing business operations.”
City Savings Bank, which mainly provides salary loans to public school teachers, government workers, and pensioners, was the fourth biggest thrift bank in the country in asset terms as of June with P161.29 billion, the latest Bangko Sentral ng Pilipinas data showed.
According to its balance sheet, its stockholders’ equity stood at P21.33 billion at end-June.
It had a gross loan portfolio of P125.22 billion in the period and a gross nonperforming loan ratio of 9.36%.
Its capital adequacy ratio was at 11.08%, while its net interest margin was 6.91%.
Meanwhile, its parent UnionBank saw its net income fall by 40.54% year on year to P1.82 billion in the second quarter amid lower interest earnings from loans and higher provisions.
This brought its first semester profit to P3.25 billion, down by 38.86% from the same period last year.
UnionBank’s shares climbed by 55 centavos or 1.89% to close at P29.60 apiece on Thursday. — Aaron Michael C. Sy
