ASIA United Bank (AUB) posted a consolidated net income of P6.1 billion in the first half, a 17-percent increase from P5.2 billion a year ago and boosted mainly by double-digit growth in total revenues and improved asset quality.
In a statement, AUB said the result was its highest first-half income so far, nearly matching the full-year net income of P6.3 billion in 2022 and translating to a return on assets of 3.3 percent and a return on equity of 21.1 percent.
The bank said it remained optimistic of hitting its performance targets this year despite a lower growth forecast for the economy due to tariffs and trade uncertainty as well as geopolitical tensions and other external headwinds.
“We will remain relentless in our efforts to reach out to the unbanked and underserved, and in helping every Filipino achieve economic mobility,” AUB President Manuel Gomez said.
Total revenues rose 13 percent year-on-year to P11.2 billion from P9.9 billion while earning assets surged 21 percent to P382.6 billion from P316.5 billion.
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Net interest income rose 7 percent to P8.8 billion while non-interest income also saw significant growth, up 40 percent to P2.4 billion.
This was attributed to higher trading and foreign exchange gains and increased service fees from digital and branch-related services.
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Operating expenses increased 8 percent to P3.6 billion due to higher compensation, capital expenditures and business expansion, but the cost-to-income ratio remained low at 32.2 percent.
The bank raised its loan loss provisions by 134 percent while its non-performing loan (NPL) ratio slightly improved to 0.41 percent from 0.43 percent, with an NPL coverage ratio of 115.8 percent.
AUB’s total loan portfolio jumped 36 percent to P255.6 billion from P187.9 billion while total deposits grew 16 percent to P325.8 billion. Low-cost current and savings accounts made up 79 percent of total deposits, up from 75 percent last year.
Total assets expanded 16 percent to P404.5 billion from P349.0 billion while total equity rose 26 percent to P64.9 billion from P51.4 billion.
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AUB said it remained well-capitalized with a common equity tier 1 ratio of 18.13 percent and a capital adequacy ratio of 18.85 percent, both higher than last year’s.
AUB shares on Tuesday rose by P1.10, or 1.99 percent, to P56.50 apiece.
