Asia United Bank Corp. (AUB) posted a higher net income for the first half of the year, buoyed by a robust core lending portfolio.
The bank’s net profit rose to 6.19 billion Philippine pesos from 6.13 billion a year earlier.
Management attributed the improvement to steady growth in lending and a resilient funding base.
AUB reported a return on equity of 18.3% and a return on assets of 3%.
Net interest income increased 14.9% year over year to 10.11 billion pesos, while total interest earnings grew 8.2% to 12.69 billion pesos.
The rise in interest revenue was largely driven by a 10% increase in loans and receivables, which reached 281 billion pesos compared with 256 billion pesos in the same period last year.
Net interest margin settled at 5.1% at the end of June.
Non‑interest income, encompassing earnings from services such as credit cards, trust services, and other branch transactions, climbed 16% to 1.2 billion pesos.
Combined, total operating income reached 12.32 billion pesos, a 10.1% increase year over year.
Operating expenses grew 11% to 4.0 billion pesos, resulting in a cost‑to‑income ratio of 32.6%.
AUB set aside 596 million pesos in provisions for credit losses, a 227% rise from the previous year, while its non‑performing loan ratio remained low at 0.44% and the coverage ratio stood at 107.2%.
Deposits expanded 3.8% to 338 billion pesos, with current and savings accounts making up 76.12% of the total at 257 billion pesos.
The bank’s balance sheet grew to 427 billion pesos in assets, a 5.6% increase, and equity reached 70.54 billion pesos, up 8.7% from the prior year. Capital adequacy stood at 19.28% and the common equity Tier 1 ratio at 18.62%.
Bank leadership highlighted a focus on expanding its digital ecosystem to support future growth and maintain profitability.
Shares closed 0.21% lower at 48.40 pesos per share on Thursday.
