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

  • Our Lady of Piat: Centerpiece of Cagayan’s gifts to Christianity
  • Sign maker to be nailed to cross for 28th time
  • 50 Quezon City cops each carry 30-kg crosses
  • AFP: Abu Sayyaf group, not MILF, target of Basilan operation
  • Massive infra spending set
  • Sports

  • Federer would skip tennis to be with wife, newborn
  • Manny Pacquiao in PBA? If so, he’ll wear No. 17
  • PSC sets Blu Girls US training
  • Power Pinoys settle for 7th place
  • Successful coaches to get raise
  • Lifestyle

  • Are your favorite malls open this Holy Week break?
  • Celebrate Easter Sunday at Buddha-Bar Manila
  • Moriones feast: A slow, steady transformation
  • Weaving ‘palaspas’ a tradition kept alive in Tayabas City
  • Finalists announced for best translated books
  • Entertainment

  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • ‘Community’ star happy with return of show’s creator
  • Jealousy is kid stuff
  • Mommy-daughter adventure continues
  • Business

  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Number of retrenched workers rose by 42% in ’13
  • PH seen to sustain rise in FDIs
  • Gov’t subsidies to state firms fell in first 2 months
  • Technology

  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Another reason to quit social media this Holy Week: your safety
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Milpitas, California kids wrap up a successful run of ‘The Wiz’
  • Netizens welcome Japan’s visa-free travel plan
  • Marketplace