Quantcast
Latest Stories

Asia United Bank’s net profit grows by 20% due to trading, lending

By

MANILA, Philippines—The Rebisco group’s banking arm Asia United Bank, the next bank to debut on the Philippine Stock Exchange, posted a 20-percent growth in net profit to P1.36 billion, in 2012, attributing it to robust trading and lending activities.

In a press statement on Wednesday, the 15-year-old AUB said non-interest income surged by 45 percent to P1.7 billion due to higher trading gains on securities sold, other operating income and fees and commissions.  Most banks posted hefty trading gains in 2012, as the 100-basis-point reduction in the central bank’s key policy rates boosted the value of bond holdings.

Net interest earnings also increased albeit at a modest pace of 2 percent to P1.81 billion as record-low interest rates pared down industry-wide interest margins.  AUB expanded its loan book last year by 24 percent to P33.59 billion, with commercial lending to top-tier corporations and medium enterprises accounting for the bulk.

AUB, which aspires to be a more significant player in the Philippine banking system, expanded its balance sheet last year by 27 percent to P63.35 billion while its capitalization went up by 25 percent to P11.5 billion.  Capital adequacy ratio to risk assets stood at 15 percent versus the minimum requirement of 10 percent.

The increase in the bank’s earning assets was supported by a 23-percent increase in deposits to P46.97 billion.

In 2012, AUB formalized its acquisitions of the Cooperative Bank of Cavite (renamed Cavite United Rural Bank) and Asiatrust Development Bank. This expanded AUB’s nationwide presence to 107 branches as of the end of 2012 to serve more customers. It plans to open 45 more branches this year and double its branch network by 2015.

It was earlier reported that AUB has made plans for an initial public offering (IPO) worth around $150 million and has mandated foreign banks UBS and Credit Suisse to arrange the equity offering.  The bank is expected to file within the next few days an application to register new securities at the Securities and Exchange Commission.

AUB is owned by a diverse group of Asian investors engaged in property development, manufacturing and other equity ventures. Republic Biscuit Corporation (Rebisco), the Philippines’ leading manufacturer, distributor, and exporter of snack food products for the past 49 years, is the biggest shareholder of the bank.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Asia United Bank , banks , Business , net profit



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Seabed search for missing Malaysian jet to widen
  • Lacson rejects calls to name ‘pork’ execs
  • Obama due in Seoul as North Korea nuclear test fears grow
  • Hold departure order out vs Corona, Singson
  • Malaysia to release MH370 report–PM
  • Sports

  • Michael Phelps loses to Lochte in comeback meet
  • Sharapova advances to Stuttgart quarterfinals
  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Corruption not invincible after all
  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • Global Nation

  • Filipinos second-shortest in Southeast Asia
  • China welcomes PH apology
  • Only 4 Etihad passengers not accounted for
  • Abandoned in Malta,15 PH seamen return
  • Senator hopes PH will also get same vow
  • Marketplace