AUB net income climbs by 27% in the first half
ASIA UNITED Bank Corp. (AUB) saw its consolidated net income rise by 27% to P5.2 billion in the first half on the back of higher revenues, it said on Wednesday.
“Thanks to the improving business environment, AUB continues to deliver consistent performance in the first half of the year. To remain a ‘challenger bank’ among the country’s top listed universal banks, we must become the ‘Digital Partner of Choice,’ advocating for open collaboration and helping others share in our success and responsibility to deliver financial inclusion,” AUB President Manuel A. Gomez said in a statement.
Its financial statement was unavailable as of press time.
The bank’s income performance for the first semester translated to a return on equity of 21.9% and a return on assets of 3.1%.
Net interest income grew by 10% to P8.2 billion in the first six months of 2024, mainly driven by higher earnings from loans and its investment activities.
As a result, its net interest margin stood at 5.4%, up from 5% a year prior.
Meanwhile, AUB’s operating expenses rose by 7% to P3.3 billion due to higher compensation, capital expenditures, and investments in further business growth.
Its cost-to-income ratio stood at 33.5%.
The bank’s improved asset quality also contributed to its strong first-half performance, it said, as its nonperforming loan (NPL) ratio went down to 0.43% from the previous year’s 0.9%.
NPL coverage ratio stood at 150.8%, up from 114.8% a year ago.
AUB set aside loan loss provisions worth P78 million in the first half, 92% less than the P952 million recorded in the same period last year.
Total loans stood at P187.9 billion at end-June, it said.
On the funding side, its deposits were at P281.1 billion, with 75% being low-cost current account, savings account deposits, higher than the 72% share recorded in the comparable year-ago period.
AUB’s loan-to-deposit ratio was at 66.8%.
The bank’s total assets stood at P349 billion at end-June, expanding by 6% from the year-ago level.
Total equity also increased by 18% year on year to P51.6 billion amid retained earnings.
The bank’s common equity Tier 1 ratio was at 17.8%, while capital adequacy ratio was at 18.6%, both above the regulatory minimum.
AUB’s shares rose by 80 centavos or 1.9% to close at P42.90 each on Wednesday. — A.M.C. Sy
