AUB plans capital buildup
MANILA -Asia United Bank (AUB) is planning to hike its authorized capital stock as it builds up a war chest to beef up its business, which has been picking up following the reopening of the economy.
In a disclosure on Monday, the listed bank announced it would increase capitalization to P14.7 billion, which is divided into 1.47 billion shares with par value of P10 each.
Its authorized capital currently stands at P5 billion and divided among 500 million shares valued at P10 each.
“The increase in the authorized capital stock will support future business expansion in line with the bank’s strategies and directions,” AUB said.
The transaction is still subject to the approval by the stockholders and the Securities and Exchange Commission.
The date of filing for the amendments to the articles of incorporation is yet to be announced.
Apart from this, the board of directors also approved on Monday the declaration of a 50-percent stock dividend.
The listed bank saw its net income in the first quarter improve by 54 percent to P2 billion amid better commercial loan demand.
Loan portfolio for the three-month period grew by 10 percent to P185 billion, lifting the total operating income by 35 percent to P4.5 billion.
As of end-March, total assets stood at P328 billion while total equity amounted to P43 billion. It has common equity tier 1 ratio and capital adequacy ratio of 15.4 percent and 16.3 percent, respectively.
“We believe our agility in achieving a balance among growth, pricing, expense and risk management will continue to enable us to surmount the challenges of higher inflation and interest rate volatility that are seen to persist in 2023,” AUB president Manuel Gomez said earlier.