Publicly listed Asia United Bank (AUB) expects its net income to return to its pre-pandemic level of P4 billion this year, 30 percent or P1 billion higher than in 2020.
“2021 will definitely be a better year than 2020, as we expect the vaccine rollouts by the government and the private sector to improve consumer confidence and lead to increased economic activity. These, in turn, will boost our commercial and consumer lending business, which remain stable,” said AUB President Manuel A. Gomez.
With the expected pickup in lending activity, the bank said it is ready to set aside appropriate loan loss provisions in 2021 as required. It has already allocated P638 million in loan loss provisions in the first quarter of 2021. While 2020 was a challenging year for many businesses across the globe, AUB and its four subsidiaries managed to generate P3 billion in net income in 2020.
At its Annual Stockholders Meeting held virtually for the second year due to lockdown restrictions, Gomez said AUB has managed to stay competitive against industry peers despite the pandemic.
Based on the consolidated figures of the top 10 universal banks, AUB said it ranked high on all measures of profitability, financial strength, and operational efficiency: 2nd in net interest margin, 4th in return on equity, 4th in return on assets, 3rd in capital adequacy ratio, 1st in cost-income ratio, 1st in deposit growth, and 1st in total assets growth.
