UNION BANK of the Philippines, Inc. (UnionBank) is set to hike its authorized capital stock to P60.31 billion after it received regulatory approval from the Securities and Exchange Commission (SEC).

The 70% increase in its capital from P35.31 billion previously was approved by the SEC on Dec. 5, the Aboitiz-led bank said in a disclosure to the local bourse on Wednesday.

UnionBank’s board of directors had approved the capital increase in February to support an increase in loan disbursements, it said previously.

“The increase in the authorized capital stock will be used to support growth and for general corporate purposes,” the lender said.

The Bangko Sentral ng Pilipinas had okayed the listed lender’s planned capital hike in August.

As of Dec. 31, 2022, UnionBank had 385 branches, and 585 automated teller machines nationwide.

The lender saw its net income drop by 58.99% year on year to P1.65 billion in the third quarter as the bank set aside more loan loss provisions in the period versus the prior year.

This brought its net income for the first nine months to P8.1 billion, down from the P10.13 billion recorded in the same period in 2022.

UnionBank’s shares rose by 80 centavos or 1.42% to close at P57.05 apiece on Wednesday.