Asia United Bank (AUB) reported a slight uptick in net income to ₱6.19 billion for the first half of 2026 from ₱6.13 billion in the same period last year due to steady growth in its core lending business and a resilient funding base.

In a disclosure to the Philippine Stock Exchange, the bank reported that these earnings translated to a Return on Equity (ROE) of 18.3 percent and a Return on Assets (ROA) of three percent, as total operating income expanded by 10.1 percent to ₱12.32 billion.

Total interest income for the period reached ₱12.69 billion, up 8.2 percent year-on-year, while net interest income grew by 14.9 percent to ₱10.11 billion. This growth was largely driven by a 10 percent surge in loans and receivables, which rose to ₱281 billion from ₱256 billion in the first half of 2025.

“Our steady results in the first half of 2026 reflect a strong foundation that enables us to aggressively accelerate our future-ready digital roadmap,” said AUB President Manuel A. Gomez.

He added, “As financial landscapes rapidly evolve, we are doubling down on expanding our digital ecosystem—from scaling our HelloMoney e-wallet to enhancing cross-border payment integration through AUB PayMate. By embedding cutting-edge technology into every facet of our operations, we aim to deliver frictionless banking experiences, capture new growth corridors, and maintain our trajectory of sustainable, technology-led profitability.”

The bank’s total assets grew by 5.6 percent year-on-year to ₱427 billion as of June 30, 2026, compared to ₱405 billion in the same period last year.

On the liabilities side, AUB continued to benefit from a stable, low-cost funding structure. Total deposit liabilities increased by 3.8 percent to ₱338 billion. Current and Savings Accounts (CASA) remained the cornerstone of this base, totaling ₱257 billion and accounting for 76.12 percent of total deposits.

This disciplined balance sheet management enabled the bank to support its lending activities while optimizing interest expenses, yielding a Net Interest Margin (NIM) of 5.1 percent.

Non-interest income from other operations—including HelloMoney, credit cards, trust services, AUB PayMate, and branch transactions—increased by 16 percent to ₱1.2 billion.

Operating expenses rose 11 percent to ₱4.0 billion to support business growth, but operational efficiency remained highly competitive, with the bank maintaining a cost-to-income ratio of 32.6 percent.

Reflecting proactive risk management in response to the macroeconomic environment, provisions for credit losses were raised by 227 percent to ₱596 million. Despite ongoing credit expansion, asset quality remained sound: AUB reported a low Non-Performing Loan (NPL) ratio of 0.44 percent, backed by a robust NPL coverage ratio of 107.2 percent.

AUB also sustained capital and liquidity buffers well above regulatory minimums. Total equity grew by 8.7 percent year-on-year to ₱70.54 billion, lifting the bank's Capital Adequacy Ratio (CAR) to 19.28 percent and bringing its Common Equity Tier 1 (CET1) ratio to 18.62 percent. (James A. Loyola)