Asia United Bank Corp. (AUB)
ASIA UNITED Bank Corp. posted higher earnings in the third quarter. — BW FILE PHOTO

ASIA UNITED BANK Corp. (AUB) saw its net profit increase in the third quarter, thanks to interest income from loans and receivables.

In a statement on Wednesday, the lender said its net income climbed 66% year on year to P3.8 billion in the third quarter.

“Boosting its bottom line was the 38% growth in interest income from loans and receivables,” the bank’s statement said.

The bank’s net interest income expanded by 24% to P6.9 billion in the July to September period from P5.6 billion a year ago. This resulted in a 4.3% net interest margin, up from the 4.2% logged in the same comparable period of 2018.

Meanwhile, AUB’s gross interest income increased by 39% to P10.4 billion as of end-September from P7.5 billion a year ago.

“This growth is a result of the successful execution of our strategy from the beginning of the year, which remains a testament of the trust and confidence that our customers give us,” AUB President Manuel A. Gomez said in a statement.

AUB raised P7 billion through its maiden bond offering in October, going beyond its initial target of P3 billion.

The three-year papers carry a coupon rate of 4.625% per annum and is the first tranche of the bank’s P30-billion bond program announced in August.

AUB’s shares closed unchanged at P53.70 apiece on Wednesday. — LWTN