MANILA, Philippines — Profit of Rebisco-led Asia United Bank surged by over 50 percent in the nine months to September this year, exceeding its pre-pandemic performance.
In a regulatory filing, the bank and its subsidiaries posted a P4.6-billion net income from January to September, 57 percent higher than the P2.9 billion in the same period last year.
This is also almost four percent better than the P4.4 billion it earned in the same period before the pandemic happened.
AUB attributed its improved nine-month performance to gains from trading and investment securities, as well as increased lending and better credit quality.
The earnings translated to a return on assets of 1.9 percent and a return on equity of 16.4 percent.
Operating income jumped by 40 percent to P1.6 billion amid a surge in trading and securities gain and a 100 percent rise in foreign exchange gain to P345.2 million.
Net interest income also grew by 14 percent to P9.3 billion while interest expense slipped nine percent to P1.2 billion.
AUB generated a five percent increase to P214 billion in low-cost current account and savings account (CASA) that led to a CASA-to-total deposits ratio of 82 percent from 78 percent.
Likewise, better asset quality led to a 27 percent drop in provision for credit and impairment losses to P1 billion during the period.
AUB president Manuel Gomez said the bank continues to prepare for headwinds even after it has exceeded its pre-COVID performance.
These include inflationary pressures due to higher interest rates, continued peso depreciation, rising commodity prices, geopolitical tensions, and a resurgence in COVID variants.
“We will remain prudent, vigilant, and agile, even as we continue to be confident of ending 2022 with a stronger financial position,” Gomez said.
Meanwhile, operational expenses inched up three percent, resulting in a cost-to-income ratio of 38.6 percent.
AUB is one of the top 20 banks in the Philippines with an asset size of P317.8 billion as of end-September.