Asia United Bank (AUB) and its four subsidiaries sustained their double-digit growth performance in the first three months of the year, mainly attributable to increased commercial loan demand as the economy reopens and business activity picks up.
The group booked a P2-billion net income for the first quarter, 54 percent higher than in the same period in 2022. This resulted in a Return on Equity (ROE) of 19.9 percent and a Return on Assets of 2.5 percent.
Total operating income grew 35 percent to P4.5 billion, mainly from the 31 percent increase in net interest income to P3.7 billion as a result of AUB’s loan portfolio which was 10 percent higher than year-ago at P185.0 billion.Its Net Interest Margin ratio stood at 4.8 percent, 100 basis points higher than 3.8 percent for the first quarter 2022. Further boosting the bank’s operating income was the 282 percent increase in its trading and securities gains.
AUB also continued to demonstrate its operational efficiency with a 7 percent modest increase in operating expense before provision for losses, resulting in a cost-to-income ratio of 33.2 percent, a significant decline from 41.7 percent in 2022.
