AUB tweaks loan schemes amid pandemic

ASIA UNITED Bank Corp. (AUB) has modified loan schemes for borrowers heavily hit by the coronavirus crisis following its assessment of individual accounts.

“We are offering a restructured loan option for auto, housing and salary loan borrowers who belong to industries badly affected by the pandemic,” AUB Senior Vice- President and Consumer Loans Group Head Leo F. Intalan said in an e-mail.

AUB Chairman and Chief Executive Officer Abraham T. Co said in the bank’s annual stockholders meeting held virtually in July that they will review accounts individually to address the concerns of and help customers that experienced “economic damage without the fault of their own” due to the coronavirus disease 2019.

Mr. Co also acknowledged then that the pandemic will likely affect the quality of their assets.

The lender has also adjusted some arrangements for their borrowers in its credit card segment.

“Qualified cardholders are offered the pandemic installment program, which allows them to pay their outstanding balance on installment up to 24 months at a monthly add-on interest rate that is lower than the regular interest on partial payments,” AUB First Vice-President and Card and Acquisition Business Head Mags V. Surtida said.

There was a mandatory grace period imposed for loan payments due to the lockdown measures in previous months. This eventually ended in June when restrictions were eased, with banks deciding on a case-to-case basis regarding loan arrangements that could give relief for consumers.

The Bayanihan II bill ratified by Congress provides for another 60-day mandatory grace period for loan payments, including credit cards.

AUB’s net earnings declined 24% year on year to P1.114 billion in the second quarter amid higher loan loss provisions due to the pandemic. In the first semester, net income also dropped 10% to P2.3 billion.

Its shares closed unchanged at P45 apiece on Wednesday. — Luz Wendy T. Noble