MANILA, Philippines — The profit of Asia United Bank (AUB) jumped by 32 percent to a record P6.1 billion from January to September compared to last year’s P4.6 billion on sustained business volume and margin growth, and higher non-interest income.
AUB president Manuel Gomez said the listed bank expects to maintain its lead among the country’s top 10 listed universal banks in terms of compounded annual growth rate (CAGR) on key indicators since it was listed on the bourse in 2013.
Publicly disclosed audited figures showed AUB topped the list from 2013 to 2022 with a CAGR of 18 percent in net income, 14 percent in total assets, 17 percent in total loans and 16 percent in total deposits.
With the strong performance, the bank’s return on equity (ROE) increased to 19.4 percent from 16.4 percent, while return on assets rose to 2.5 percent from 1.9 percent.
Total operating income for the nine-month period grew by 21 percent to P13.3 billion as net interest income jumped by 20 percent to P11.2 billion due to business volume growth and increased yields. Net interest margin rose to 4.9 percent from 4.1 percent
Likewise, non-interest earnings jumped by 27 percent to P2.1 billion.
AUB’s loan book went up by seven percent to P188.2 billion amid more robust corporate and consumer loans.
While its loan volume swelled, the group was able to maintain its asset quality with a gross NPL ratio of 2.14 percent.
The bank’s provision for potential loan losses went up by 12 percent to P1.1 billion from P1 billion in the same period last year, strengthening its NPL coverage ratio to 107 percent from 89.1 percent.
Loan growth was matched by an uptick in deposits, which climbed eight percent to P284.5 billion.
Operating expenses for the nine-month period rose 12 percent to P4.8 billion, primarily from the compensation increases and transaction volume-related expenses.
For the third quarter alone, AUB’s net income rose by 15 percent to P2 billion from P1.7 billion in the same quarter last year as net interest income and non-interest income rose while provisions for credit losses fell.