Asia United Bank (AUB) and its subsidiaries further improved their profitability in the first nine months of the year due to higher revenues and lower loan loss provisions.
The group posted another record-high P8.6 billion in consolidated net income, 41 percent more than the year-ago level and surpassing its full-year net income of P8.3 billion in 2023. This translated to a return on equity of 22.4 percent and return on assets of 3.4 percent, both higher than the previous year’s 19.4 percent and 2.5 percent, respectively.
Net interest margin rose 11 percent to P12.5 billion due to an increase in interest income from its loan portfolio and investment activities. Its net interest margin ratio was up 5.3 percent from the previous year’s 4.9 percent.
Non-interest income grew from improved foreign exchange gain, recovery income, and service charges and other fees from other operating activities such as credit cards, AUB PayMate, remittance, trust, and other branch-related transactions.
Operating expenses rose by 6 percent to P5.0 billion during the first three quarters, largely because of higher staff compensation and capital expenditures as AUB focused on new business growth opportunities.
Credit and impairment losses plunged by 93 percent from P1.1 billion a year ago, as credit quality improved.
The bank posted a nonperforming loans (NPL) ratio of 0.53 percent from the previous year’s 0.7 percent. It remains sufficiently covered from probable losses with an NPL coverage ratio of 120.7 percent versus the previous year’s 107.0 percent.
