Asia United Bank (AUB) reported a nine-percent improvement in net income to ₱9.4 billion in the first nine months of 2025 from the ₱8.6 billion earned in the same period last year, on the back of higher revenues and improved operational efficiency.

The bank said in a disclosure to the Philippine Stock Exchange (PSE) that its sustained profitability translated into a 3.2-percent return on assets (ROA) and a 20.4-percent return on equity (ROE).

Total operating income grew by 10 percent to ₱17.2 billion in the first three quarters of 2025 from ₱15.6 billion a year ago.

Earning assets rose 22 percent to ₱390.6 billion from ₱319.2 billion, resulting in an eight-percent increase in net interest margin (NIM) to ₱13.5 billion and a NIM ratio of five percent during the period.

Thanks to stronger trading and foreign exchange (forex) gains, along with higher fee-based revenues, the bank’s non-interest income increased by 18 percent to ₱3.7 billion from the first nine months of 2024.

While operating expenses (opex) increased 10 percent to ₱5.5 billion, driven by higher compensation, capital expenditures (capex), and growth-related costs, AUB was able to keep its cost-to-income ratio low at 32.2 percent, demonstrating sustained operational efficiency.

AUB set aside loan loss provisions 141-percent higher than the previous year to support its expanding loan portfolio.

Despite the increase in loan volumes, its non-performing loan (NPL) ratio improved to 0.36 percent from 0.53 percent a year ago. It also remains sufficiently covered, with an NPL coverage ratio at 117.14 percent.

“Sustaining our profitability is no mean feat, considering the heightened risks in our operating environment, both domestically and globally. But we managed to post double-digit growth rates in our core businesses,” said AUB President Manuel A. Gomez.

AUB’s total loan portfolio grew 29 percent year-on-year to ₱256.9 billion from ₱198.9 billion, while total deposits rose 19 percent year-on-year to ₱336.2 billion to support business volume growth.

Funding cost remains low as low-cost deposits—current account and savings account (CASA)—comprised 78 percent of its total deposits, higher than the previous year’s 76 percent.

Total assets grew 19 percent year-on-year to ₱417.1 billion from ₱352 billion, while total equity increased 16 percent to ₱65.7 billion from ₱56.6 billion, mainly from retained earnings.

The bank is adequately capitalized, with capital ratios well above regulatory requirements. It has an indicative Common Equity Tier 1 (CET1) Ratio of 18.75 percent and a capital adequacy ratio (CAR) of 19.5 percent.