Digital Bank UNOBank, Inc. (UNO Digital Bank) aims to break even by next year as it works to accelerate its loan distribution by expanding its product base.
Manish Bhai, Chairman and Chief Executive, UNO Digital Bank, said, “Profitability is very important… We will be in our fourth year next year. So, definitely our target is to reach operational breakeven within the first half, and then reach full breakeven within the year.”FAiser said at a media briefing on Tuesday.
“And right now, we're on that path.”
With a few exceptions, digital banks typically take about seven years to become profitable, he said. Based on available data, only two of the six digital banks currently operating in the Philippines were profitable in 2024.
UNO Digital Bank reported a net loss of P1.04 billion in 2024, up from a loss of P653.5 million in 2023, based on its annual report. This was mainly due to higher operating expenses which offset the growth seen in its net interest income and other income.
It was granted a digital banking license in 2021 and launched its mobile app in 2022. It began offering loans in 2023 and other products and services like insurance and bill payments in 2024.
UNO Digital Bank now has more than four million users, it said on Tuesday.
Mr. Bhai said he expects their debt issuances to exceed P30 billion by the end of 2026.
“We have already disbursed more than P8 billion in loans to a company that is not part of a group… We would like to double that number, but there are some challenges,” he said.
“We are trying to work and ensure that this number exceeds P30 billion by the end of next year.”
The bank's product offerings include its Basic Savings Account UNOReady, High Interest Savings Account UNBoost, Fixed Deposit UNOEarn, Cash Loan UNONow, Sales Finance UNOEasy and Salary Loan UNO@Work.
Mr Bhai said they also plan to launch a new salary loan product before the end of the year, which they hope will help them attract new customers.
“There is a product that we will launch in a month. It has been deliberately kept under wraps,” he said. “This is a salary loan product that will be a game changer… that will directly give us access to 400,000 to 500,000 new customers.”
He said they are also looking to expand their contact points by expanding their business partnerships.
“So, you see, when you put all these things together, your loan disbursement is likely to increase by a very large amount,” Mr Bhai said.
Based on its latest balance sheet posted on the central bank's website, UNO Digital Bank Assets stood at P10.22 billion at the end of June.
Its gross loan portfolio stood at P3.08 billion, up from P2.69 billion a year earlier, with its gross non-performing loan ratio at 10.96%, down from 15.41%.
Meanwhile, deposits as of June stood at P7.83 billion, up from P7.55 billion earlier. , KK Chan
