Asia United Bank Corp. (AUB) posted a record net income of ₱3.2 billion for the first quarter of the year, driven by expanding margins and a surge in low-cost deposits that helped the lender weather global economic headwinds stemming from conflict in the Middle East.

In a disclosure to the Philippine Stock Exchange, the bank said its Return on Equity (ROE) stood at 19.3 percent and Return on Assets (ROA) at 3.2 percent.

“Our historic-high financial results serve as a powerful validation of our ability to maintain stability and growth in a ‘permacrisis’ environment,” said AUB President Manuel A. Gomez.

He added that, “Our robust internal controls and investment strategies are built to withstand extreme external shocks while delivering world-class service.”

Buoyed by effective asset-liability management and a robust funding base, its Net Interest Margin (NIM) expanded to 5.3 percent during the first quarter, up from 5.1 percent in the previous year.

AUB saw sustained momentum across its core lending and deposit-taking operations. Total loans and receivables grew by 9.4 percent year-on-year to ₱276.2 billion.

On the funding side, total deposit liabilities reached ₱335.5 billion, an 8.9 percent increase year-on-year. Notably, the bank’s CASA (current and savings accounts)-to-Total Deposits ratio climbed to 78 percent from 69 percent a year ago, reflecting a robust and low-cost funding base.

Operational efficiency also reached new heights, with the cost-to-income ratio improving to 30.4 percent from 32.6 percent in the first quarter of 2025.

Despite proactively increasing credit provisions to ₱331.3 million, AUB maintained a remarkably low non-performing loan (NPL) ratio of 0.44 percent and a strong NPL coverage ratio of 111.2 percent, proof of its disciplined risk management.

The bank’s performance was underpinned by a significant strengthening of its capital position. Its Capital Adequacy Ratio (CAR) improved to 19.3 percent, while its Common Equity Tier 1 ratio rose to 18.7 percent.

Both metrics remain comfortably above regulatory requirements, providing the bank with substantial capacity to cushion against macroeconomic pressures and support future expansion. (James A. Loyola)