AUB income up 37% in H1

MANILA, Philippines - Asia United Bank (AUB), the banking arm of the Republic Biscuits Corp. (Rebisco) Group, posted a 37.3-percent increase, in net income in the first six months to P817.1 million, from P595.3 million in the same period last year.

The bank attributed the improved earnings to more robust trading and lending activities. During the period, its interest income from loans and treasury assets surged 25.9 percent to P1.6 billion while total loans rose 11.3 percent to P35.9 billion compared to the year-ago level.

Net interest margin increased 32 percent to P1.2 billion as AUB booked more commercial loans to top-tier corporations and medium enterprises and started growing its consumer loan portfolio comprised of auto, housing and salary loans.

Total resources grew 25 percent to P80.3.

After a successful initial public offering last May that raised P8 billion, AUB started flexing its financial muscle in a bid to double its branch network by 2015.

AUB is set to open more branches in key cities, including in Visayas and Mindanao, to meet its target of 150 branches by the end of 2013 from the current network of 126.

The bank has started to reap gains from its branch expansion and more intensified deposit generation campaigns as total deposits jumped 11.9 percent to P54.8 billion year-on-year.

“We remain true to our promise: AUB will become one of the top 10 banking industry players in the country,” bank president Abraham Co said.

In addition to physical presence and alternative channels such as online banking, AUB also launched last year its mobile banking application, joining the league of a handful of just local banks that have entered the mobile arena.

AUB is among the few Philippine commercial banks granted a full branch license in 1997 and operating until this day. In a span  of 15 years AUB has become one of the fastest-growing commercial banks in the country.