Asia United Bank (AUB) saw its net income soar to a record P11.3 billion last year, a 36% jump from 2023, driven by loan portfolio expansion, improved asset quality and lower loan loss provisions.
This marks the first time the bank’s earnings have surpassed the P10 billion mark.
“AUB is able to reach out to many Filipinos, including the unbanked and underserved, to offer digital payment solutions such as our all-in-one digital payment acceptance product AUB PayMate, as well as revolutionize cross-border digital payments through our HelloMoney e-wallet, among others,” said Manuel Gomez, president of AUB.
The bank’s return on equity (ROE) climbed to 21% from 18.6%, while return on assets (ROA) improved to 3% from 2.4%, both record highs since 2013.
Net interest margin (NIM) widened by 11% to P16.8 billion, driven by higher income from loans and investments. The bank’s loan portfolio expanded by 26% to P245.4 billion, fueling revenue growth.
Credit quality continued to improve, with AUB’s non-performing loan (NPL) ratio hitting a record low of 0.3%. Loan loss provisions dropped by 74%, while the NPL coverage ratio stood at 113.7%.
Low-cost deposits remained AUB’s primary funding source, comprising 71% of total deposits. Non-interest income surged 48% to P4.1 billion, supported by foreign exchange gains, recovery income, and service charges.
Operating expenses rose by 6% to P6.8 billion due to higher compensation and capital expenditures. However, the bank’s cost-to-income ratio declined to 32.8% from 36.2% the previous year.
Total assets increased by 9% to P386 billion, while total equity climbed 19% to P58.4 billion, bolstered by retained earnings.
