Asia United Bank said Thursday net profit in the nine months through September surged 41 percent to P8.6 billion, driven by higher revenues and reduced loan loss provisions.
“We expect our performance to remain robust, especially as we fully leverage the government’s National ID system. AUB is the first Philippine bank to integrate the Philippine Statistics Authority’s eVerify, which will expedite our account opening process and enhance Know Your Customer compliance. This initiative will reduce paperwork, improve loan application and approval processes, and bolster security for financial transactions,” said AUB president Manuel A. Gomez.
AUB said the financial performance translates to a return on equity of 22.4 percent and a return on assets of 3.4 percent, both up from last year’s figures of 19.4 percent and 2.5 percent, respectively.
Net interest income in the January-September period rose 11 percent to P12.5 billion, helped by increased interest income from its loan portfolio and investment activities. The net interest margin ratio rose to 5.3 percent, compared to 4.9 percent the previous year, indicating improved efficiency in generating income from assets.
Non-interest income also saw growth, bolstered by enhanced foreign exchange gains, recovery income, and service charges from various operating activities, including credit cards, AUB PayMate, remittances, trust services, and other branch-related transactions.
Operating expenses increased by 6 percent to P5.0 billion during the first three quarters, primarily due to higher staff compensation and capital expenditures aimed at exploring new business growth opportunities.
Credit and impairment losses dramatically decreased by 93 percent, falling from P1.1 billion a year ago, reflecting improved credit quality. The bank reported a nonperforming loans ratio of 0.53 percent, down from 0.7 percent the previous year.
Total assets reached P352.0 billion, marking a 2 percent increase from the same period last year. The growth in the total loan portfolio highlights AUB’s commitment to expanding its lending activities while maintaining financial stability.
Through its digital partnerships, AUB enables merchants to accept digital payments via its all-in-one payment product, AUB PayMate, and is revolutionizing cross-border digital payments through its HelloMoney e-wallet, among other innovations.
