AUB profits soared to record high of P8.3B in 2023

AUB profits soared to record high of P8.3B in 2023

/ 03:51 PM February 05, 2024

MANILA, Philippines  —Asia United Bank (AUB) posted its highest ever earnings in 2023 on strong loans growth coupled with higher lending rates.

AUB, owned by the Rebisco Group’s Ng family, said on Monday that net income last year soared 32 percent to P8.3 billion, a record in its 26-year history.

“We attribute this vastly improved performance to our robust loan growth, more profitable net interest margin, continuously improving credit quality, and higher operating efficiency,” AUB president Manuel A. Gomez said in a statement on Monday.

Article continues after this advertisement

The figures, based on unaudited results, also translated to a return on equity of 18.6 percent and return on assets of 2.38 percent—both historic highs for the lender.

FEATURED STORIES

READ: AUB hit record-high 9-month income on strong loan biz

“With our stronger performance in 2023, we expect to solidify our lead among the country’s top 10 listed universal banks in terms of compounded annual growth rate on key indicators since AUB was listed on the bourse in 2013,” Gomez said.

Article continues after this advertisement

AUB’s net interest margin alone jumped 17 percent to P15 billion as total assets expanded by 4 percent to P355.1 billion.

Article continues after this advertisement

Expenses from non-performing loans fell 27 percent to P1.2 billion while the NPL ratio was at 0.58 percent, which was below the industry’s 1.6 percent.

Article continues after this advertisement

READ: Oct bank lending picks up pace, ending six-month slowdown

Overall expenses rose to P6.5 billion, however, AUB underscored its easing cost-to-income ratio of 36.3 percent versus 37.6 percent last year.

Article continues after this advertisement

“[W]ith interest rates expected to remain elevated this year, and global shocks a continuing concern, we have to remain agile to sustain our performance,” Gomez said.

AUB ended the year with total deposits of P292 billion, mostly from low-cost current and savings account deposits.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Total equity increased by 23 percent to P49.1 billion. Its common equity tier 1 ratio of 16.88 percent and a capital adequacy ratio 17.49 percent remained above regulatory requirements, the filing showed.

TAGS: aub, expenses, Profit

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.