AUB income up 7.6% in H1

MANILA, Philippines - Asia United Bank (AUB) has reported a 7.6 percent increase in net earnings in the first six months of 2014 to P879.5 million from P817.1 million in the same period last year, on the back of a double-digit growth in net interest income.

Interest income from loans expanded 34.5 percent, aided by a 58.8-percent rise in its loan portfolio.

Net interest margin, meanwhile, was steady at 4.35 percent.

In a disclosure to the Philippine Stock Exchange (PSE), AUB president Abraham T. Co said the bank’s consumer loan portfolio grew 23 percent.

 “While we continue to grow our loans to corporates and SMEs (small and medium enterprises), we have also succeeded in increasing our sales of retail products, such as auto loans, mortgages, salary loans, and remittances,” he added.

By the end of June this year, AUB had a consolidated distribution network of 190 branches and 178 automated teller machines (ATMs).

The AUB chief executive said the extensive distribution network allowed the commercial bank of the Rebisco Group to reach a deposit base worth P82.9 billion, 51.4 percent more than the previous year.

Total assets grew to P112.68 billion, up 40.3 percent from the same period last year.

Co further reported that AUB eyes another 26 branches in key cities and provinces within the second semester of the year.

By the fourth quarter of the year, the bank will launch its credit card business.

 “The group remains confident that its financial performance will be sustained throughout the year as it seizes opportunities from a growing domestic economy,” Co said.

Last year, AUB reported a four-percent increase in consolidated net income to P1.5 billion, marked by a one-time gain in the sale of foreclosed properties.