UnionBank triples capex to P3 B in 2017

MANILA, Philippines – Aboitiz-led Union Bank of the Philippines is spending P3 billion for its capital expenditure this year amid the implementation of its transformation strategy.

Edwin Bautista, president and COO of UnionBank, said the amount is triple the average annual amount of P1 billion spent over the past few years.

Bulk of the total amount would be used for information technology.

“With the help of Tata Consulting, a few months ago we completed our architecture design and obtained board approval to spend P3 billion in capital expense in 2017 for its implementation. This is three times what we normally spend for capital expense,” Bautista said.

UnionBank reported its net income jumped 67 percent to an all-time high of P10.1 billion last year from P6 billion in 2015 due to robust performance across all its segments.

“2016 was a great year for UnionBank. It was great because we successfully transitioned to a new business model, actually two years ahead of schedule,” he added.

Bautista said the bank is currently digitizing the old organization, trying to mimic a digital bank, and partnering with “fintechs.”

“As of 2017, I am happy to inform you that we have achieved major milestones in this transformation strategy just to show you how serious we are. We have completed our organizational readiness by several strategic hires,” he said.

“2016 is going to be a tough act to follow but we are confident the organization will rise to the challenge. We are starting the year with a new product segment that could contribute significantly to our bottom line and that is bancassurance,” he added.