UB – History

UnionBank of the Philippines came into being as a joint venture of the Social Security System,
Insular Life, and the Aboitiz Group.
UnionBank began building the foundations for its operations in 1981, and in just a year, became
a commercial bank on January 19, 1982. A decade after, in 1992, the Bank debuted at the
Manila and Makati Stock Exchanges in June of that year, and was granted a Universal Banking
License the month after.
In 1994, UnionBank acquired the International Corporate Bank, which marked the first of a
series of acquisitions that would strengthen UnionBank’s capabilities to deliver banking services
tailored to the unique needs of Filipino customers.
In 2006, UnionBank purchased 98 percent of one of the top 20 largest banks in the country
International Exchange Bank (iBank), making it the 7th largest private domestic commercial
bank in the Philippines.
In 2013, in line with a renewed thrust to enable financial inclusion in the country, UnionBank
acquired thrift bank City Savings Bank. The acquisition enabled the Bank to expand its customer
franchise and achieve its goal of financial inclusion that is also driven by sustainability.
In its thrust to promote sustainable financial inclusion, the Bank entered into its first venture
into rural banking and micro-financing by acquiring a majority stake in the Cebu-based First-
Agro Industrial Bank (FairBank) in 2016.
In the same year, UnionBank embarked on its radical digital transformation journey, favoring
expansion through digital channels over the traditional opening of more branches, while
reinforcing its commitment to deliver superior customer experience and making a promise that
‘no one gets left behind’ to promote inclusive prosperity in the Philippines.

UB – Leaders

UB is the publicly listed holding and investment company of the Aboitiz & Co. with major
investments in power, banking, food, and land development businesses.

About Aboitiz & Company

Aboitiz & Company (ACO) was founded by Paulino Aboitiz in the late 1800s as an abaca trading
and general merchandise business in Ormoc, Leyte and later ventured into inter-island shipping
to transport its goods across the Visayas. It was formally incorporated in 1920 and serves as the
private holding company of the Aboitiz family today.
 
When Don Ramon Aboitiz, Paulino’s second son, took over management of the company, he
established a strong foundation of growth and expansion. From a small mercantile operation,
ACO has grown and diversified to various companies engaged in distinct services in key
industries that are contributing to nation-building.
 
The journey of ACO from a small family business to being one of the largest and most respected
business groups in the Philippines is a testament to its solid foundation built on trust, fairness,
integrity, and quality.
 
With five generations of family and professional management behind its business success,
Aboitiz echoes the time-honored philosophy of Don Ramon, the legacy of excellence nurtured
and strengthened over the past century.
 
As we look forward to our next 100 years, our path to growth is guided by our purpose and
promise: to drive change for a better world by advancing business and communities.

(established and led UB)

Erramon Isidro M. Aboitiz

Age
64
Academic Qualification
Bachelor of Science Major in Accounting and Finance , Gonzaga University, Washington, USA
Date of First Appointment
October 11, 1988
Directorship Type
Non-executive Director
Professional Background :

 Executive Vice President and Chief Operating Officer, Aboitiz Equity Ventures.

Committee Membership:

 Chairman: Executive Committee; Trust Committee

 Vice Chairman: Non-Executive Board

 Member: Risk Management Committee, Market Risk Committee

 Alternate Member: Corporate Governance Committee

Directorship in other publicly-listed companyies:

 Aboitiz Equity Ventures, Inc

 Asian Institute of Management

 Directorship in other company/ies:

 Endeavor Philippines

 Aboitiz & Company, Inc.

Affiliations:

 Aboitiz Foundation, Inc

The Social Security System (SSS) administers social security protection to workers in the
private sector. Social security provides replacement income for workers in times of death,
disability, sickness, maternity and old age. 

The Insular Life Assurance Company, Ltd.(commonly known by its trade name, Insular
Life, and shortened as InLife) is a mutual life insurancecompany in the Philippines.

UB - Services

UBP offers a broad range of products and services, which include deposit and related services;
corporate and middle market lending; consumer finance loans such as mortgage, auto loans
and credit card; investment, treasury and capital market; trust and fund management; wealth
management; remittance; cash management and electronic banking; and bancassurance. 

Financial Products
UnionBank offers various financial services for Filipinos, including savings accounts, time
deposits, and loans.

Savings Account
There are four types of high interest savings accounts that you can open with UBP. These are,
namely:
 UnionBank Regular Savings Bank account
The Regular Savings account provides flexibility and easy access to services wherever they may
be. You can use the card to purchase at establishments that accept Visa debit cards, even if
they’re outside the Philippines, using your Visa microchip card. Aside from that, you can also
withdraw money anywhere there are UnionBank, Bancnet, and VISA ATMs.
To open a Regular Savings bank account, you’ll need to make an initial deposit of PHP10,000. To
earn interest, you’ll need to maintain an average daily balance (ADB) of PHP25,000.
 Personal Savings account

If you want the perks of a Regular Savings account without the PHP10,000 initial deposit, you
should pick the Personal Savings account instead. It has all the benefits like worldwide
transactions at Visa, UnionBank, and BancNet ATMs. You can also use the Visa microchip card
to make purchases at any establishment that accepts Visa cards.
To open this account, you don’t need to make an initial deposit, but you must maintain an ADB
of PHP10,000 to earn interest.
 My First Savings
Teaching children the virtue of saving for a rainy day is a vital early task for parents. With
UnionBank’s My First Savings account, they can start their kids on the path to financial literacy,
independence, and responsibility.
You can establish an account for your child with only an initial deposit of PHP100. This comes
with a Visa Debit Card, which is only available for children at least 7 years old. UnionBank also
provides free activity books that your kids can read and learn more about finances and savings.
 Savings+
UnionBank’s Savings+ account brings financial security and mental wellness together in one
package. For those who want and can set aside a specific amount as savings, the account makes
them eligible for free group life insurance coverage.

There’s no initial deposit required to open a Savings+ account. However, you’ll need to
maintain at least PHP25,000 monthly to qualify for life insurance, which includes up to PHP3
million in accidental death and benefits. Not only are you setting aside money for a rainy day,
but you also ensure that you receive extra cash in a severe emergency. You don’t even have to
pay monthly premiums to ensure coverage.
The account also includes an optional debit card that you can use for transactions.

Time Deposits
UnionBank’s only high interest time deposit account is the Peso Time Deposit, which can earn
up to 1.25% interest after more than 360 days. The minimum deposit amount is PHP50,000 and
can be locked in at least 30 days. Deposits from PHP1 million and higher can be locked in for at
least 7 days and still earn interest within that period.
The interest rate is tiered, which means that the more you save and the longer you lock the
money, the more earnings you make.

Loans
As a universal bank, UBP also has retail loans in its services. There are three personal loans, and
these are:
 Auto loan
The UnionBank auto loan provides funding for people who decide they want to buy their dream
car. The loan can provide coverage for specific car models and can be paid off for up to 60
months. You can lower your monthly amortization further by increasing your downpayment up
to 50% of the car’s price.
 Home Loans
Purchase your dream home with UnionBank’s home loans. You can set up installments for up to
20 years and fix the interest rate to 9.5% for 5 years. You can also cash out up to 90% of the
property’s total contract price and pay a lower monthly amortization.
 Quick loans
These are multi-purpose financing for existing UnionBank savings account holders. You can use
the proceeds to go on a vacation, improve your home or spend money on a hobby. You only
need to log in to your UBP online banking account and apply for this loan there.
Aside from personal loans, the bank offers the following financing options for micro, small and
medium entrepreneurs.
 Business loan
This package provides at least PHP50,000 and up to PHP1 million financing for entrepreneurs.
There’s no need to pledge collateral, and the loan can be paid off for up to 36 months. The
interest rate is also very low at 3%.
 Dealers financing line
Although listed under loans for small businesses, the dealers’ financing line is a revolving credit
facility that dealers can draw from when needed. Borrowers can qualify for up to PHP10 million
in credit that they can draw from any time they have to. This credit line also features flexible
payments that work around the business’ financial capabilities.
Of course, these are only a few products that UBP offers its retail and corporate clients. It also
features credit cards, foreclosed assets auctions, unit investment trust funds, and many others.

UnionBank offers investment and trust solutions, which comprise UIT funds, investment
management, and estate planning solutions.

A Unit Investment Trust Fund (UITF) is an open-ended pooled trust fund denominated in pesos
or any acceptable currency. It is operated and administered by a trust entity and made available
by participation. Each UITF product is governed by a Declaration of Trust (or Plan Rules) which
contains the mechanics for investing, operating and administering the fund.
What are the types of UITFs available in the market?
UITFs are established and managed based on a set of investment objectives and strategies, and
these have varying levels of risks and returns. Among the most common types of funds in the
market are:

 Money Market Fund - These funds are for investors who are looking for a conservative
way to invest their funds. The investment objective here is capital preservation while
giving the client easy access to their funds.
  Fixed Income Fund - These funds are also aimed towards capital preservation. The
investments include government securities, bonds and other fixed income funds are also
subject to market volatility depending on the interest rate trends.
 Equity Fund - The purpose of these funds are to maximize returns by going into equities
or stock investments and dividend earnings. Clients investing in this type of fund should,
however, be willing to take the risks attached to investing in equities. A longer
investment horizon is recommended in investing in an equity fund.
 Balanced Fund - These funds are invested in a mix of equities and fixed income
securities. It is aimed at preserving capital as well as generating additional yields from
potential gains on stock investm

What instruments can a trustee invest in?

The character and kind of investments which may be made by the trustee depend on the
investment parameters set forth in the UITF Declaration of Trust or Plan Rules. BSP regulations,
however, prescribe that UITF fund investments shall be limited to:

1. Bank deposits
2. Securities issued by or guaranteed by the Philippines government or the BSP
3. Tradable securities issued by the government of a foreign country, any political
subdivision of a foreign country or any supranational entity
4. Exchange listed securities
5. Marketable instruments that are traded in an organized exchange
6. Loans traded in an organized market
7. Other tradable investments that the BSP may allow

When does an investor get the proceeds of the UITF investment?

Payment to the investor will depend on the settlement period prescribed by the trustee. This
may vary depending on the nature and settlement convention of the investments of the UITF
product.
How do you invest in a fund?
In order to invest in a fund, a person must buy shares or units of participation in the fund. The
value of one unit is calculated by dividing the current net market value of the underlying
investments in the fund by the number of outstanding units. The market value of the entire
fund is equal to the market value of all the securities in the fund. This is known as Net Asset
Value or NAV. By dividing the NAV by the number of outstanding units, we get the NAV per unit
of participation or NAVPU. The NAVPU is the price the investor must pay for one share or unit of

participation.

Solutions
In the complex and ever-evolving world of wealth management, UnionBank Private Banking
seeks to unlock possibilities for its clients by giving them the edge and the power to navigate
their wealth towards financial legacy.

INVESTMENT
Financial Advisory

Global Funds & Investment Strategies

Local Investment Outlets

Asset Swaps

Wealth Management Advisory

Family Wealth Structuring, Retirement & Estate Planning

Succession Planning, Inter-generational Wealth & Business Transition

NextGen Academy Program

Philanthropy & Sustainability