Asia United Bank Reports 25% Q3 Income Growth

Asia United Bank

Asia United Bank’s (AUB) operating income from its core business increased by 25 per cent year-on-year to P11.5 billion.

The bank’s net interest income increased by 17 per cent from P6.9 billion in 2019 to P8.1 billion, translating to a net interest margin of 4.3 per cent due to loan portfolio growth.

Loans and receivables increased by 4 per cent from P158.6 billion to P165.4 billion in 2020 compared to the same period in 2019. The growth was predominantly funded by low-cost CASA deposits, bringing total deposits to P232 billion from P223 billion in the same period from last year.

Total non-interest income on the other hand, rose to P3.4 billion, 50 per cent higher than last year’s P2.3 billion, due to better trading revenues.

As of quarter end, the bank set aside provisions for possible loan losses amounting to P3.0 billion, four times higher than last year’s P693 million, as uncertainty in the economy brought about by the pandemic continues.

Non-performing loans (NPL) rest at a manageable level at 2.2 per cent, with the NPL rate bearing a sufficient cover of 96.3 per cent.

Despite the hurdles many faced during the pandemic, the bank’s net income remained flat at P3.8 billion at the end of the third quarter of 2020 compared to 2019, which was in fact the bank’s banner year.

Total assets hit P290.1 billion as of September, up from the P271.2 billion recorded in the same period last year.

“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 announced in a press statement. – BusinessNewsAsia.com