Asia United Bank (AUB) expects to meet its consolidated net income target of P4 billion this year as improving business and consumer confidence boosts its core business. This is 30 percent higher than the group’s net income of P3 billion in 2020.
“We projected that 2021 will be a better year and we are on track with our targets so far. The easing of lockdown restrictions, the continuous vaccine rollouts by the government, and the improvementin the business climate should all bode well for the bank’s commercial and consumer lending businesses,” said AUB President Manuel Gomez.
In the first nine months of the year, the publicly listed universal bank and its four subsidiaries posted a consolidated net income of P2.9 billion versus P3.8 billion in the same period a year ago.While gains from trading and securities declined by P2.4 billion, this was partially offset by a P1.6-billion decrease in provision for losses.
The group’s net income translated to a Return on Assets of 1.3 percent and Return on Equity of 10.8 percent versus year-ago ratios of 1.8 percent and 14.6 percent, respectively
Its total assets increased by 9 percent to P317billion as of end-September from P291 billion year-on-year.
Total loans remained flat at P165 billion while total deposits grew by 13 percent to P262 billion during the period.
As both the banking industry and consumers remained cautious in the third quarter, overall loan appetite remained weak.
This was mirrored in AUB’s consolidated net interest income from loans and receivables which decreased by 11 percent to P8 billion as of end-September from year-ago.
AUB managed to keep its operating expenses down by 25 percent to P5.5 billion during the period on lower loan loss provision after setting aside a significant buffer last year to cover the credit risk brought about by the pandemic.
“We anticipate credit quality to continue to improve as the economy opens up so our loan loss provision should be sufficient for the year. We also see better trading opportunities and stable operating expenses as the monetary policy stance remains accommodative to support the economy’s full recovery,” Gomez said.
