Asia United Bank (AUB), the financial arm of the Ng family, said Monday it posted a consolidated net income of P11.3 billion in 2024, up by 36 percent from P8.3 billion it booked in 2023.
It said it achieved the strong growth on the back of a double-digit growth in loan portfolio and a steady decline in loan loss provisions.
The bank’s full-year performance translated into a return on equity of 21 percent, up from 18.6 percent. Return on assets also improved to 3 percent from 2.4 percent previously.
“We have managed to sustain the growth in our profitability since the pandemic, thanks to our robust core business and digital partnerships,” said AUB president Manuel Gomez in a stock exchange filing.
“AUB is able to reach out to many Filipinos, including the unbanked and underserved, to offer digital payment solutions such as our all-in-one digital payment acceptance product AUB PayMate, as well as revolutionize cross-border digital payments through our HelloMoney e-wallet, among others,” said Gomez.
The bank’s loan portfolio grew 26 percent to P245.4 billion from P194.5 billion in 2023.
It said that despite the loan growth, its nonperforming loan (NPL) ratio eased to a record low of 0.3 percent and loan loss provision was reduced by 74 percent.
The bank said it remains sufficiently covered, with an NPL coverage ratio at 113.7 percent, higher than previous year’s 107.9 percent.
Net interest margin widened 11 percent to P16.8 billion on higher interest income from the bank’s loan portfolio and investment activities.
Non-interest income grew 48 percent to P4.1 billion from improved foreign exchange gains, recovery income, service charges and other fees from other operating activities such as credit cards.
Higher compensation, capital expenditures and business growth-related expenses lifted operating expenses by 6 percent to P6.8 billion.
The bank’s total assets grew 9 percent to P386 billion as of end 2024. Total equity increased 19 percent to P58.4 billion, mainly from retained earnings.
“We hope to sustain our growth momentum as we start reaping the full benefits of the government’s National ID system, which will hasten our account opening process and know your customer compliance, reduce paperwork, improve loan application and approval processes and enhance security for financial transactions,” Gomez said.
