Strong loan growth and trading gains helped Asia United Bank (AUB) sustain a streak of double-digit net income growth for 17 straight quarters which started during the COVID-19 pandemic in 2020.

“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.

In the first three months of the year, the bank saw its consolidated net income rise by 34 percent to ₱3.1 billion from ₱2.3 billion in the same period of 2024.

This translated to a return on equity (ROE) of 22.3 percent and a return on assets (ROA) of 3.4 percent, breaching year-ago ratios of 20.0 percent and 2.8 percent, respectively.

The much-improved profitability was attributed to a 34 percent expansion in its loan portfolio to ₱252.6 billion from ₱188.4 billion a year ago.

Asset quality continued to improve despite the loan growth, with its non-performing loan (NPL) ratio at 0.35 percent from the previous year’s 0.47 percent, among the lowest in the industry.

AUB further reduced its loan loss provision by 15 percent to ₱66.0 million from ₱78.0 million in the same quarter last year. It remains sufficiently covered, with an NPL coverage ratio at 119.8 percent, higher than previous year’s 116.7 percent.

Interest expense on deposits increased 11 percent year-on-year as total deposits rose by nine percent to ₱308.1 billion.

The higher interest expense was offset by a nine percent increase in interest income to ₱5.6 billion. This resulted to a net interest income of ₱4.3 billion, eight percent higher versus the year-ago level, and a net interest margin of 5.1 percent.

The bank’s low-cost deposit (current account and savings account or CASA) remains its primary source of funding, accounting for 69 percent of its total deposits.

Non-interest income jumped 81 percent to ₱1.3 billion as other non-interest bearing business activities such as trading and securities gains, foreign exchange gains, miscellaneous income and service charges and other fees from other operating activities grew.

“While we are confident of our performance, we remain cautiously optimistic about the near-term outlook for the global economy due to the ongoing trade wars, the potential disruption in global supply chains, the projected slowdown in many major economies, and the growing geopolitical tension in some parts of the world,” said Gomez.

He added that, “We will continue to adjust our

sails to navigate this global turmoil and remain agile.”