AUB income up 4% to P1.5B in 2013

MANILA, Philippines - Asia United Bank (AUB), the banking arm of the Rebisco Group, posted a four percent increase in consolidated net income to P1.5 billion in 2013 compared to the 2012 level.

The bank said the increase in earnings was due to higher loan margins and gains on sale of foreclosed properties.

This was despite the negative impact of lower trading income and higher cost of branch expansion in 2013. The 2013 net profit translates to a 9.5 percent return on equity.

Reflecting the interest rate volatility and the bank’s more conservative stance in 2013, net trading gains fell 42 percent to P681 million from P1.2 billion in 2012.

The share of net interest income from loans to AUB’s total operating income thus rose to 65 percent from 51 percent in 2012, while trading gains accounted for 15 percent versus 32 percent year-on-year.

Its gross loan portfolio grew 39 percent as it stepped up its lending activities while total deposits tripled as a result of an aggressive branch network expansion.

The banking unit of the Rebisco Group, the country’s leading food snack company, said its 2013 unaudited financial results showed a 55 percent surge in net interest income to P2.9 billion from the previous year’s P1.9 billion.

This was on the back of the 39 percent growth of its loans and receivables to P51 billion year-on-year.

Its corporate and consumer loan portfolios grew 45 percent and 29 percent, respectively.

Total resources grew 64 percent to P107 billion from P65 billion in 2012 as the bank continued to improve its capital position to P18 billion, particularly after a P7-billion initial public offering in May last year.

Its capital adequacy ratio (CAR) further rose to 18.4 percent from 15.4 percent in 2012, way above the regulatory minimum of 10 percent.

A more intensified deposit generation campaign and an increase in branches nationwide shored up its level of deposits by 56 percent to P74 billion in 2013 from P47 billion a year ago.