Asia United Bank acquires Asiatrust

MANILA, Philippines - Medium-sized commercial bank Asia United Bank Corp. (AUB) has acquired recently Asiatrust Development Bank Inc. (Asiatrust), a thrift and development bank, for an undisclosed amount.

The acquisition will expand AUB’s nationwide branch network to 100, or its existing 72 plus the 28 of Asiatrust situated mainly in Metro Manila.

 The acquisition, excluding the trust business of Asiatrust, will be completed within the first semester of the year.

“The acquisition of the Asiatrust banking business will allow us to deliver the AUB brand of service commitment and excellence to more clients within a short period of time,” Abraham T. Co, AUB president, said in a statement.

AUB focuses in the middle and consumer markets, but has been moving into the small and medium enterprise lending market. Asiatrust specializes in the SME market.

The banking unit of Jacinto Ng Sr. Group of Companies is expecting its net income to grow to at least P1.2 billion in 2011, likely boosted by strong securities and foreign currency trading gains as well as SME and consumer lending. In 2010, net earnings reached P1 billion.

In the first semester of 2011, loans rose to P1.48 billion. Thus, total loan portfolio stood at P19 billion with majority or P13 billion accounted by commercial loans. Auto loans reached P633 million from just P446 million.

Deposits stood at P34.8 billion while capital funds stood at P9 billion a year earlier.

AUB also acquired the Cooperative Bank of Cavite and the Rural Bank of Angeles in 2010.

The commercial bank is a member of the Jacinto Ng Sr. Group of Companies, which includes the Republic Biscuit Corp. (Rebisco), Kuo Yu Philippines Holdings Inc., Lamba Holdings Corp., and Citio Maunlad Investments Corp. The bank’s minority stakeholder is Magis Equity Ventures of Singapore.