Asia United Bank Corp. said Monday its 2023 net income surged 32 percent to a record P8.3 billion, aided by double-digit growth in net interest income and a strong growth in loans.
“We attribute this vastly improved performance to our robust loan growth, more profitable net interest margin, continuously improving credit quality, and higher operating efficiency.”
AUB president Manuel Gomez
The listed lender said return-on-equity last year stood at 18.6 percent while return-on-asset is a 2.38 percent, both improvements from the 2022 levels of 16.1 percent and 1.9 percent, respectively. These figures were record highs since the bank had its initial public offering in 2013.
AUB reported net interest income last year increase 17 percent to P15 billion amid rising interest rates.
Net non-performing loan ratio of 0.58 percent was way below industry average of 1.6 percent. Loan loss provision declined 27 percent to P1.2 billion.
The bank posted operating expenses of P6.5 Billion in 2023.
AUB said total assets rose 4 percent to P355.1 billion while equity jumped 23 percent to P49.1 billion.
It said common equity tier 1 ratio was at 16.88 percent while capital adequacy ratio was 17.49 percent, both above regulatory requirements.
“With our stronger performance in 2023, we expect to solidify our lead among the country’s top ten listed universal banks in terms of compounded annual growth rate (CAGR) on key indicators since AUB was listed on the bourse in 2013,” said Mr. Gomez. “However, with interest rates expected to remain elevated this year, and global shocks a continuing concern, we have to remain agile to sustain our performance.”
