AUB posts 38% growth in Q1 bottom line

Rebisco group-led Asia United Bank (AUB) booked P1.1 billion in first quarter net profit, up by 38 percent year-on-year, on higher earnings from core lending business.

The three-month performance translated to a return on equity of 15.11 percent and return on assets of 2 percent.

“Amid the feverish competition within and outside the banking industry, AUB and its subsidiaries’ core lending businesses remained robust. Our digital strategy enables us to reach out to more customers anywhere and anytime despite our modest branch network,” AUB president Manuel Gomez said in a statement.

Total net interest income increased by 29 percent year-on-year to P2.2 billion, driven by higher interest income from loans and receivables, which amounted to P2.9 billion. “This gives us greater optimism about our bottom line prospects, given our continuous reliance on our core earning assets which are more sustainable,” Gomez said.

In the first quarter, the group’s total assets grew by 13 percent to P234 billion, with loans and receivables increasing by 19 percent to P153.9 billion.

The group also continued to tap cross-selling opportunities for both commercial and consumer loans across all product types, including credit cards, housing loans, auto loans, and salary loans.

On the funding side, AUB saw a 12-percent growth in deposits to P186.9 billion.

AUB has 260 branches nationwide, including those of wholly-owned subsidiaries Cavite United Rural Bank and Rural Bank of Angeles. —DORIS DUMLAO-ABADILLA