Asia United Bank (AUB) reported a 36 percent growth in consolidated net income to ₱11.3 billion last year from the ₱8.3 billion earned in 2023 due to double-digit growth in loan portfolio and a steady decline in loan loss provisions.

In a disclosure to the Philippine Stock Exchange, the bank said this is equivalent to a compounded annual growth rate (CAGR) of 21 percent since it became a publicly listed universal bank in 2013.

AUB’s 2024 net income translated to a return on equity of 21 percent and a return on assets of three percent—higher than the previous year’s 18.6 percent and 2.4 percent, respectively.

“We have managed to sustain the growth in our profitability since the pandemic, thanks to our robust core business and digital partnerships,” said AUB President Manuel A. Gomez.

AUB’s revenue growth mainly came from its loan portfolio, which grew 26 percent to ₱245.4 billion in 2024 from ₱194.5 billion a year ago—translating to one of the highest CAGR of 16 percent.

Despite the loan growth, its asset quality further improved, with its nonperforming loan (NPL) ratio at a record low of 0.3 percent and loan loss provision reduced by 74 percent.

The bank said it remains sufficiently covered, with an NPL coverage ratio at 113.7 percent, higher than the previous year’s 107.9 percent.

Net interest margin widened 11 percent to ₱16.8 billion due to an increase in interest income from the bank’s loan portfolio and investment activities.

Interest expense on deposits dipped three percent despite an increase in deposit volume, resulting in the widening of net interest margin ratio to five percent from the previous year’s 4.8 percent.

The bank’s low-cost deposit (current account/savings account or CASA) remains its primary source of funding, with a 71 percent share of total deposits.

Non-interest income grew 48 percent to ₱4.1 billion from improved foreign exchange gains, recovery income, and service charges and other fees from other operating activities such as credit cards, e-wallet, remittance business, trust, and other branch-related transactions.

Operating expenses rose by six percent to ₱6.8 billion mainly due to higher compensation, capital expenditures, and business growth-related expenses.

The bank continues to exhibit efficient resource management in its business generation as evidenced by its 32.8 percent cost-to-income ratio, even lower than the previous year’s 36.2 percent.

Total assets grew nine percent to ₱386 billion while total equity increased 19 percent to ₱58.4 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 Ratio of 17 percent and a capital adequacy ratio of 17.8 percent—higher than the previous year’s 16.9 percent and 17.5 percent, respectively.

“We hope to sustain our growth momentum as we start reaping the full benefits of the government’s national ID system, which will hasten our account opening process and know your customer (KYC) compliance, reduce paperwork, improve loan application and approval processes, and enhance security for financial transactions,” Gomez added.