AUB’s H1 profit up 44%

REBISCO group-led Asia United Bank grew its net profit in the first six months by 44 percent year-on-year to P1.23 billion on strong gains from lending and trading activities.

The AUB group – composed of the listed universal bank AUB and two rural banks (Rural Bank of Pampanga and Cavite United Rural Bank) – expanded interest income by 25 percent to P3.5 billion in the first six months.

Earnings were driven by a 28.6-percent year-on-year expansion in AUB’s loan book to end the six-month period at P2.7 billion. Trading income also improved, the bank reported to the Philippine Stock Exchange on Friday.

At present, 80 percent of the bank’s earnings are derived from lending while only 20 percent are generated from the treasury business- a reversal of the mix years ago which used to be as much as 70 percent reliant on the volatile treasury business.

AUB seeks to become a more significant player in the banking system by doubling its branch network while maintaining its long-term profitability at around 10-15 percent return on equity.