AUB profit hits record high in 2023

MANILA, Philippines — Rebisco-led Asia United Bank (AUB) and its subsidiaries boosted earnings by 32 percent to a record high of P8.3 billion in 2023, from P6.3 billion in 2022.

The bank traced the strong performance to faster credit growth, wider net interest margin, and improved asset quality.

“We attribute this vastly improved performance to our robust loan growth, more profitable net interest margin, continuously improving credit quality, and higher operating efficiency,” AUB president Manuel Gomez said in a statement.

Based on unaudited financial results, the latest income figure translated to an increase in return on equity of 18.6 percent from 16.1 percent and a return on assets of 2.38 percent from 1.9 percent — both record highs since the bank had its initial public offering (IPO) in 2013.

Amid the environment of rising interest rates, AUB saw its net interest margin widen by 17 percent to P15 billion from 2022.

Credit quality, as measured by net non-performing loans (NPL), stood at 0.58 percent, well below the industry’s 1.6 percent average.

This helped cuts its loan loss provisions by 27 percent to P1.2 billion in 2023.

While operating expenses rose to P6.5 billion in 2023, AUB managed to improve its operating efficiency, as measured by its cost-to-income which further dropped to 36.3 percent in 2023 from the previous year’s 37.6 percent.

Total assets inched up by four percent to P355.1 billion as total deposits rose to P292 billion.

Equity grew by 23 percent to P49.1 billion year-on-year, translating to a common equity Tier 1 ratio of 16.88 percent and a capital adequacy ratio 17.49 percent, both well above the regulatory threshold.