A double-digit expansion in its deposit base enabled Asia United Bank (AUB) to grow its total assets by 16 percent to P336 billion in the first six months of the year compared to P289 billion a year ago.
The publicly listed universal bank posted a 22 percent increase in total deposits to P282 billion from the previous year’s level, fueled mainly by low-cost CASA deposits. On track with AUB’s objective to depend on low-cost funding, CASA deposits accounted for 71 percent of its deposit base, an improvement from the previous year’s 68 percent ratio.
Taking advantage of its stronger CASA and the prevailing lower interest rate in the market, AUB exercised its call option on its unsecured subordinated debt qualified as tier 2 capital. This led to a Capital Adequacy Ratio of 15.9 percent versus the previous year’s 16.9 percent.
“We expect 2021 to be a better year than 2020 due to the vaccine rollouts by the government and the private sector that will help improve consumer confidence and lead to increased economic activity. However, we remain cautious and vigilant about the COVID-19 variants and the economic impact of the ongoing pandemic. We are not letting our guard down,” said AUB President Manuel Gomez.
