AUB income steady at end-Sept. on increased loan loss provisions

ASIA United Bank Corp.’s net income was steady in the first nine months as it continued to ramp up its loan loss reserves. — BW FILE PHOTO

ASIA UNITED BANK Corp. (AUB) booked a steady net income in the first nine months of the year as it increased its loan loss reserves amid the coronavirus pandemic.

AUB posted a net income of P3.8 billion at end-September, steady from the same period a year ago, it said in a disclosure to the local bourse on Monday.

The bank’s net interest income grew by 17% to P8.1 billion in the period from P6.9 billion a year ago. Loans and receivables increased by 4% to P165.4 billion from P158.6 billion, while its nonperforming loans (NPL) ratio stood at 2.2%. NPL coverage was at 96.3%.

Loan loss provisions reached P3 billion or four times bigger than the P693 million allocated in 2019. The bank attributed this to the “uncertainty in the economy brought about by the pandemic.”

Total deposits also went up by 4% to P232 billion from P223 billion on the back of a higher volume of low-cost current account, savings account or CASA deposits.

Its net interest margin stood at 4.3%.

Meanwhile, non-interest income jumped by 50% to P3.4 billion in the first nine months from P2.3 billion in the previous year on the back of higher trading revenues.

AUB’s operating income from its core businesses came in at P11.5 billion in the nine-month period, 25% higher year on year.

Its assets totaled P290.1 billion as of September, higher than the P271.2 billion recorded in the comparable year-ago period.

“Our current position and utmost priority lies within the balance of running the business while ensuring the safety of both our people and our customers.  These times may be challenging, yet AUB’s core business remains fundamentally strong” AUB President Manuel A. Gomez was quoted as saying.

AUB shares closed at P44.10 apiece on Monday, down by five centavos or 0.11% from its previous finish of P44.15 each. — KKTJ