AUB 1st quarter net income up 54%

MANILA  -The Ng family’s Asia United Bank (AUB) said net income during the first three months of the year jumped 54 percent to P2 billion amid strong growth in loans.

AUB said in a statement that loans expanded by 10 percent to P185 billion, pushing up net interest earnings to P3.7 billion, a an  increase of 31 percent.

The company also underscored cost controls, which helped bring down operating expenses by 7 percent. AUB ended the period with a cost-to-income ratio of 33.2 percent, which was lower than 41.7 percent last year.

“We are reaping the fruits of our sustained investments in automation enhancements and process optimization to deliver quality services to our customers efficiently at less cost,” AUB president Manuel A. Gomez said in a statement.

Meanwhile, net interest margin ratio stood at 4.8 percent, up from 3.8 percent last year. Trading and securities gains soared 282 percent during the period, it added.

AUB’s asset quality improved with its non-performing loans (NPL) ratio at 0.95 percent versus 1.9 percent in the first quarter of 2022.

However, provision for losses increased by P300 million, bringing the coverage ratio to 114.3 percent during the quarter from 81.5 percent last year.

AUB closed the first quarter with total assets of P328 billion, up 5 percent.

It said total deposits grew by 5 percent to P273billion, with low-cost current account savings account deposits comprising 72.97 percent of its total deposit base. AUB said its loan-to-deposit ratio stood at 67.8 percent.

AUB had total equity of P43 billion, with an indicative common equity tier 1 ratio of 15.41 percent and a capital adequacy ratio of 16.03 percent, which were both above regulatory requirements.

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https://business.inquirer.net/393836/aub-2022-profit-jumps-56-to-p6-3b