Asia United Bank Corp. (AUB), the Philippines’ 12th largest lender, posted a record P6.1 billion net income for the first half, up 17 percent from P5.2 billion a year ago, nearly matching its full-year 2022 profit of P6.3 billion.
The strong performance translated to a return on assets of 3.3 percent and a return on equity of 21.1 percent, as total revenues grew 13 percent year-on-year to P11.2 billion, fueled by a 21 percent increase in earning assets to P382.6 billion.
Net interest income climbed 7 percent to P8.8 billion, yielding a net interest margin of 5 percent.
Non-interest income surged 40 percent to P2.4 billion, driven by improved trading and foreign exchange gains, as well as robust performance from AUB’s digital platforms like HelloMoney, PayMate, and its remittance and trust businesses.
Operating expenses was up 8 percent to P3.6 billion due to higher compensation and business expansion, but the bank maintained a low cost-to-income ratio of 32.2 percent.
Loan loss provisions increased 134 percent in line with an expanding loan book, which grew 36 percent to P255.6 billion. Despite this, AUB kept a low non-performing loan (NPL) ratio of 0.41 percent, with NPL coverage at 115.8 percent.
Total deposits rose 16 percent to P325.8 billion, with current account/savings account deposits comprising 79 percent, helping keep funding costs low.
AUB’s total assets grew 16 percent to P404.5 billion, while equity rose 26 percent to P64.9 billion.
AUB declared P2 per share cash dividends and a 100 percent stock dividend this year.
