Asia United Bank sees 30% profit growth this year

Asia United Bank (AUB) is looking at a net income of P600 million this year, an increase of over 30 percent from the P457 million earnings recorded last year, a top bank official said.

Key earnings from its treasury operations, retail or consumer lending, the remittance market, and new consumer products would be the main drivers for growth this year, said AUB president Benjamin T. Co.

He added that vast improvement foreseen in the property sector would likewise improve the bank’s lending program.

"It will also allow us and the rest of the industry to rid itself of the huge foreclosed properties weighing down on the country’s banking system," Co said during the formal launching of AUB’s BizKit Checking Account, its latest cash management solution for businesses and small and medium enterprises (SMEs).

The bank’s net interest income grew by 28 percent year-on-year. Earnings from foreign exchange remittances grew by 50 percent and is forecast to grow by the same rate this year.

Total assets as of end-December 2004 stood at P18.5 billion while its net worth improved by 13 percent from P3.6 billion in 2003 to P4.1 billion last year.

Total loans improved by eight percent to P11.8 billion and total deposits in the same period increased by six percent to P9.8 billion.

Non-performing assets (NPA) ratio stood at eight percent versus its total loan portfolio at the start of the year. Non-performing loans (NPLs) remained at single-digit level as against the industry average of nearly 13 percent.

AUB is pinning on the expansion of its branch network from the present 26 to almost 60 in the next three years to boost growth.