UnionBank to dissolve dormant subsidiary

MANILA, Philippines — Union Bank of the Philippines (UnionBank) has announced that its wholly owned subsidiary, Union Data Corp. (UDC), would be dissolved after receiving regulatory approval to amend its corporate term.

In a regulatory filing with the Philippine Stock Exchange, UnionBank said that the Securities and Exchange Commission has approved the amendment to Article IV of UDC’s articles of incorporation.

The amendment effectively shortens the corporation’s term of existence, which sets the stage for its dissolution.

UDC was established to support UnionBank’s operations, particularly in data-related services. However, the bank has not provided specific reasons for the dissolution or its potential impact on the broader operations of UnionBank.

UnionBank has not yet released additional details about the winding-down process, including information on UDC’s assets or operations.

UDC, which is 100 percent owned by UnionBank, was established to provide data processing services. But the subsidiary has been non-operational in recent years.

UnionBank saw its income rise by 6.2 percent to P8.6 billion in the first nine months from P8.1 billion in the same period last year on higher revenues and net interest income.

The bank’s net revenues rose by 9.2 percent to P57.7 billion from January to September compared to last year’s P52.8 billion amid the expansion of the bank’s consumer portfolio.

Since its establishment in 1968, the bank has provided commercial banking products and services such as loans and deposits, cash management, retail banking, foreign exchange, capital markets, corporate and consumer finance, investment management and trust banking.

As of December 2023, the bank and its subsidiaries had 385 branches and 437 on-site and 165 off-site ATMs, located nationwide.