MANILA, Philippines — Rebisco-led Asia United Bank saw its net income soar by 42 percent to P4.1 billion in the first semester on the back of growing business volume as economic conditions improved.
In a regulatory filing, the listed bank and its subsidiaries posted a P4.1 billion net income from January to June, 42 percent higher than the P2.9 billion in the same period last year.
AUB attributed its improved first half performance to growing business volume, higher net interest margin and better non-interest income.
AUB president Manuel Gomez said the bank continues to see improvement in consumer and business confidence.
“We see plenty of opportunities in greater collaboration particularly in digital transformation, and this gives us confidence in sustaining our gains,” Gomez said.
“But we remain on the lookout for potential headwinds as monetary policy remains hawkish,” he said.
AUB’s earnings translated to a return on assets of 2.6 percent and a return on equity of 20.3 percent.
Further, operating income jumped by 30 percent to P8.9 billion due to business volume growth and increased yields. Net interest income also surged by 41 percent to P1.5 billion.
Total loan volume picked up almost 10 percent to P190.5 billion, driven by corporate and consumer loans as confidence in the economy improved in the first semester.
Total deposits stood at P269.9 billion with low-cost current account and savings account deposits comprising 72.5 percent of its total base while its loan-to-deposit ratio stood at 70.57 percent.
Meanwhile, operational expenses rose by 13 percent to P3.1 billion primarily from the compensation increases and transaction volume-related expenses, but cost-to-income ratio was lower at 34.8 percent.
While loans increased, AUB said it maintained its asset quality with a non-performing loans ratio of 0.85 percent.
AUB is one of the top 20 banks in the Philippines with an asset size of P327.7 billion as of end-June.