A turning point is on the horizon for UnionDigital Bank, with leadership confidently projecting a path to profitability by the second half of 2026. The ambitious goal hinges on a carefully orchestrated expansion of lending, coupled with a relentless focus on maintaining strong asset quality. This isn't merely optimistic forecasting; it’s a calculated response to challenges overcome and a strategic repositioning of the entire institution.
The bank’s President and CEO, Danilo “Bong” J. Mojica II, spoke with assurance, acknowledging the uncertainties inherent in financial projections but emphasizing the solid foundation now in place. A significant correction of nonperforming loans, a clarified vision for the bank’s core purpose, and a readiness for sustained growth are the pillars supporting this optimistic outlook. The shift represents a fundamental change in course.
Looking back, 2024 proved a difficult year, with the bank reporting a net loss of P3.13 billion – a stark contrast to the P155.31-million net income achieved in 2023. However, Mojica anticipates a dramatic improvement, forecasting losses hundreds of millions lower by the end of the current year. This anticipated turnaround is a direct result of the changes implemented.
A key element of the recovery has been a renewed discipline in lending practices. The bank is actively working to bring its nonperforming loan (NPL) ratio below 6%, bolstered by increased loan loss provisioning. This proactive approach, initiated following Mojica’s appointment in August, signals a commitment to responsible growth and risk management.
The bank’s strategy, now defined as “low and grow,” prioritizes shorter-term payroll loans and a measured expansion of its most successful accounts. Data from the Bangko Sentral ng Pilipinas revealed a gross NPL ratio of 55.64% as of June, with a coverage ratio of 103.7% – indicators of progress in managing risk. These numbers demonstrate a clear trajectory toward stability.
Despite a temporary dip in gross loans – falling from P5.11 billion in 2024 to P3.58 billion as of June 2025 – the bank is poised to ramp up lending activities again. This strategic pullback was a necessary step to refine its portfolio and ensure future growth is built on a solid foundation. The groundwork is now laid for expansion.
Looking ahead, UnionDigital Bank is planning to introduce new products in the coming year, leveraging the extensive network and resources within the Aboitiz Group ecosystem. These partnerships will unlock new opportunities and accelerate the bank’s growth trajectory, solidifying its position in the evolving digital banking landscape. The future looks bright for this ambitious institution.
