LISTED Asia United Bank (AUB) on Thursday reported a consolidated net income of P8.6 billion for the first nine months of 2024, up 41 percent from P6.3 billion a year ago and surpassing its 2023 full-year profit of P8.3 billion.
AUB told the stock exchange that its return on equity grew to 22.4 percent from 19.4 percent, while its return on assets rose to 3.4 percent compared to last year’s 2.5 percent.
“We expect our performance to remain robust, especially as we start reaping the full benefits of the government’s National ID system, with AUB being the first Philippine bank to integrate the Philippine Statistics Authority’s (PSA) eVerify,” AUB President Manuel Gomez said.
The bank said that net interest income grew 11 percent to P12.5 billion during the nine-month period from P11.2 billion a year earlier, fueled by an expanded loan portfolio and investment activities.
“Non-interest income grew from improved foreign exchange gain, recovery income, and service charges and other fees from other operating activities, such as credit cards, AUB PayMate, remittance, trust, and other branch-related transactions,” it added.
Operating expenses grew 6 percent to P5 billion from P4.8 billion due to higher staff compensation and capital expenditures as the bank “focused on new business growth opportunities.”
Credit and impairment losses were said to have dropped sharply by 93 percent from P1.1 billion a year ago as its credit quality improved, but the bank did not provide the latest figures.
AUB’s nonperforming loans (NPL) ratio stood at 0.53 percent, down from 0.7 percent last year, indicating the bank remains “sufficiently covered from probable losses, with an NPL coverage ratio of 120.7 percent versus the previous year’s 107 percent.”
Total assets grew 2 percent to P352 billion from P344 billion last year, while total loan portfolio increased 6 percent to P198.9 billion.
Its loan portfolio is “sufficiently funded by deposits at P282 billion, with a loan-to-deposit ratio of 70.5 percent,” the bank said.
Current accounts savings account (CASA) deposits remained its primary source of funding, comprising 70 percent of total deposits compared to 66 percent last year.
Total equity increased 25 percent to P56.6 billion from retained earnings, while its indicative equity tier 1 ratio (19.6 percent) and capital adequacy ratio (20.4 percent) were well above regulatory requirements.
AUB has been using the PSA’s eVerify system for know your customer (KYC) verification after being accredited a “relying party” in January 2024 and becoming the first local bank to receive a security token in July.
“This will hasten our account opening process and [KYC] compliance, reduce paperwork, improve loan application and approval processes, and enhance security for financial transactions,” Gomez said.
AUB said its digital partnerships were enabling merchants to accept digital payments from their customers through its PayMate, its digital payment acceptance product, and its cross-border digital payments HelloMoney e-wallet, among others.
AUB shares on Thursday rose P1.30, or 2.17 percent, to P61.30 apiece.
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