Asia United Bank, the financial arm of the Rebisco group of companies, said Friday net income in the first nine months fell 25 percent to P1.2 billion from P1.6 billion a year ago, because of lower trading and investment gains this year.
Continuing its strategy of reducing its trading portfolio and strengthening its core business, net interest income increased 16 percent to P3.5 billion during the period. But income from trading and investment dropped 27 percent, AUB said in a disclosure to the stock exchange.
Loans and receivables grew 32.8 percent in the nine-month period to P86.4 billion from P65.1
billion a year ago. Corporate and consumer lending increased 41 percent and 19 percent, respectively.
AUB, which is among the top 20 banks in the Philippines, had an asset size of P141.1 billion as of end-September. Sustained deposit-generation campaigns boosted the bank’s total deposits to
P95.2 billion, up 28.7 percent year-on-year.
AUB total consolidated distribution network stood at 228 branches as of end-September.
Meanwhile, AUB cut short the offer period of its unsecured subordinated Tier 2 notes qualifying as Basel 3-compliant capital due to oversubscription from retail and institutional investors.
Originally scheduled to run until Nov. 16, the offer period closed on Nov. 13. The Tier 2 notes were priced near the low end of the initial pricing range at 5.625 percent per annum.
The issue date is set for Nov. 25, 2015. The notes have a maturity of 10 years, with a call option exercisable by the bank after five years and three months.
BDO Capital and Investment Corp. and Deutsche Bank AG, Manila Branch acted as joint lead arrangers, joint book runners and selling agents for the transaction.
Multinational Investment Bancorporation was also designated as selling agent and market maker, while AUB acted as limited selling agent for the transaction.
Proceeds from the offering will be used to strengthen AUB’s capital base and its capital adequacy to comply with the requirements of Bangko Sentral ng Pilipinas.
Having a stronger capital base is important in supporting our ambition to become one of the top ten leading banks in the Philippines, AUB president Abraham Co said in a statement.
AUB was formed by Filipino industrialists and Taiwanese banks, namely Republic Biscuit Corp., Lambda Holdings, China United Trust & Investment Corp., China Development Industrial Bank, Magis Equity Ventures and other individuals.
The Monetary Board of Bangko Sentral ng Pilipinas granted the bank the licenses to operate as a commercial bank on Sept. 25, 1997. Bank operations commenced on Oct. 31, 1997.