AUB nets record P9.4B on robust core businesses 

Asia United Bank Corp. (AUB)

MANILA, Philippines – Healthy loan growth boosted the bottom line of Asia United Bank (AUB) in the first nine months of the year by 9 percent to a record P9.4 billion, thus perking up growth prospects, particularly in the digital space.

In a regulatory filing on Thursday, the Ng family-led bank said its total operating income had climbed by 10 percent to P17.2 billion.

READ: Loan demand lifts AUB Q1 profit to P3.1B

It also benefited from stronger trading and foreign exchange gains, as well as higher fee-based revenues from credit cards, e-wallet and remittance transactions.

Noninterest income

As a result, AUB’s noninterest income rose by 18 percent to P3.7 billion versus the same period last year.

While its loan portfolio expanded by 29 percent to P256.9 billion due to the monetary policy easing cycle, AUB’s nonperforming loan ratio, a key metric of asset quality, eased to 0.36 percent from 0.53 percent a year ago.

READ: Asia United Bank eyes 6.5M HelloMoney users by yearend

Its loan book expansion resulted in a 141-percent surge in loan loss provisions.

“Sustaining our profitability is no mean feat, considering the heightened risks in our operating environment, both domestically and globally,” AUB president Manuel Gomez said in a statement.

Balance sheet growth

As of end-September, the bank’s assets jumped by 18 percent to P417.1 billion.

Its positive performance has pushed AUB to pursue growth in the digital space.

“We remain on the lookout for growth opportunities on the horizon, particularly in digital partnerships,” Gomez noted. “It is through this that we can offer digital payment solutions.”

Last month, AUB inked an agreement with digital insurer Singlife Philippines to offer the latter’s products through the bank’s HelloMoney e-wallet application.

HelloMoney

AUB executive vice president Wilfredo Rodriguez Jr. said they were looking at expanding HelloMoney’s user base to at least 6.5 million by the end of the year through its partnership with Singlife, among others.

Under the deal, HelloMoney clients may access Singlife’s insurance products, including cash for income loss, which covers up to P1.8 million in case of disability or death due to accidents. It also offers protection to cover medical costs, providing up to P1.3 million for hospitalization or upon diagnosis of 125 listed critical conditions.

Apart from this, AUB also partnered with state-run pension fund Social Security System (SSS) to launch the SSS Pay Card. Following the deal, SSS members may receive their benefits, loan proceeds and pension through HelloMoney.