AUB net income up 54% in Q1

The Asia United Bank (AUB) group posted a net income of P2 billion in the first quarter, up 54 percent year-on-year, the bank said on Thursday, May 4. AUB, the country’s 12th biggest bank out of 45, said its banking group recorded higher profits on the back of increased loans and other banking activities during the period. AUB said the bank and its four subsidiaries “sustained their double-digit growth performance in the first three months of the year, mainly attributable to increased commercial loan demand as the economy reopens and business activity picks up.” Rural Bank of Angeles, Cavite United Rural Bank and Asia United Leasing and Finance Corp. are AUB units. As of end-first quarter, AUB said it has a return on equity (ROE) of 19.9 percent and a return on assets (ROA) of 2.5 percent. This was higher compared to its end-2022 ROE of 16.2 percent and 1.9 percent ROA. The bank’s latest total equity is at P43 billion with an indicative common equity tier 1 ratio of 15.41 percent and a capital adequacy ratio of 16.03 percent, which are more than the central bank minimum requirement. Total assets was at P328 billion, up five percent year-on-year. Its deposit base also grew by five percent to P273 billion, with low-cost CASA deposits comprising 72.97 percent of its total deposit base while its loan-to-deposit ratio stood at 67.8 percent, said the bank. Meanwhile, AUB said its total operating income increased by 35 percent to P4.5 billion in the first quarter due to a 31 percent increase in net interest income of P3.7 billion. Its loan portfolio grew 10 percent to P185 billion. It also improved its operational efficiency which grew by seven percent and a cost-to-income ratio of 33.2 percent, lower compared to the previous year’s 41.7 percent. “We are reaping the fruits of our sustained investments in automation enhancements and process optimization to deliver quality services to our customers efficiently at less cost,” said AUB President Manuel A. Gomez in a statement. The bank recorded a higher net interest margin ratio of 4.8 percent compared to 3.8 percent same period in 2022. It likewise booked a 282 percent increase in its trading and securities business. As for its asset quality, as of end-March AUB’s non-performing loans (NPL) ratio was at 0.95 percent, lower than same period last year of 1.9 percent. It has continued to increase its provision for losses by P300 million which boosted its NPL coverage ratio to 114.3 percent from 81.5 percent last year. AUB and its subsidiaries have a network of 264 branches.