Asia United Bank on Tuesday reported consolidated net income in the first half soar 42 percent year-on-year to P4.1 billion, pushed higher by expanding business volume, higher net interest margin, and better non-interest income.
Total operating income for the period rose 30 percent to P8.9 billion on account of a 28 percent increase in net interest income to P7.4 billion and a 41 percent growth in fee-based and other income to P1.5 billion.
The listed lender said the net income in the first-half translated to higher profitability ratios, with return on equity at 20.3 percent and return on assets at 2.6 percent.
AUB said total loan volume increased by 9 percent to P190.5 billion as corporate and consumer loans rose on the back of a stronger economy. This lifted net interest margin to 5.0 percent this year from the previous year’s 3.8 percent.
Total deposits stood at P269.9 billion, with low-cost current account/savings account deposits accounting for 72.5 percent. The loan-to-deposit ratio stood at 70.57 percent.
Operating expenses rose 13 percent to P3.1 billion, primarily from compensation increases and transaction volume-related expenses.
“While we see continuous improvement in consumer and business confidence, we remain on the lookout for potential headwinds as monetary policy remains hawkish. However, we see plenty of opportunities in greater collaboration within and outside the organization, particularly in digital transformation, and this gives us confidence in sustaining our gains,” AUB president Manuel Gomez said.
