Asia United Bank said Thursday net income in the first quarter jumped 54 percent year-on-year to P2 billion, driven by increased commercial loan demand as the economy reopens and business activity picks up.
This resulted in a return on equity of 19.9 percent and a return on assets of 2.5 percent.
“We are reaping the fruits of our sustained investments in automation enhancements and process optimization to deliver quality services to our customers efficiently at less cost,” AUB president Manuel Gomez said in a statement.
Total operating income increased 35 percent to P4.5 billion, on the back of a 31-percent increase in net interest income to P3.7 billion as a result of AUB’s loan portfolio which was 10 percent higher than a year ago at P185.0 billion.
Net interest margin ratio reached 4.8 percent, or 100 basis points higher than 3.8 percent in the first quarter 2022. Further boosting the bank’s operating income was the 282-percent increase in its trading and securities gains.
AUB had a 7-percent modest increase in operating expense before provision for losses, resulting in a cost-to-income ratio of 33.2 percent, a significant decline from 41.7 percent in 2022.
Asset quality improved with its non-performing loans ratio at 0.95 percent, compared to 1.9 percent in the first quarter of 2022. Provision for losses increased by P300 million, strengthening its NPL coverage ratio to 114.3 percent from 81.5 percent year-on-year.
Total assets expanded 5 percent year-on-year to P328 billion. Total deposits also rose 5 percent to P273.0 billion, with low-cost CASA deposits comprising 72.97 percent of its total deposit base while its loan-to-deposit ratio stood at 67.8 percent.
AUB’s total equity stood at P43.0 billion, with an indicative common equity tier 1 ratio of 15.41 percent and a capital adequacy ratio of 16.03 percent, both above regulatory requirements.
AUB is one of the fastest-growing publicly listed universal banks in the country. Established at the height of the 1997 Asian financial crisis, AUB was one of only two local commercial banks licensed at the time which has since thrived and expanded its operations.
It is known for its digital innovations, which started years prior to the COVID-19 global pandemic which spurred many of its competitors to embark on digital transformation.
Among its digital innovations are e-wallet HelloMoney, pioneering payments via QR and the early adoption of the national QR PH code and AUB PayMate, its all-in-one digital payment acceptance product.