AUB grows Q1 net profit by 21.3%
Rebisco group-led Asia United Bank (AUB) grew its first-quarter net profit by 21.3 percent year-on-year to P797.7 million on higher earnings from core lending activities.
This three-month consolidated performance by AUB and its subsidiaries, which include Cavite United Rural Bank (CURB) and Rural Bank of Angeles in Pampanga, translated to a return on assets of 1.7 percent and return on equity of 12.2 percent. These ratios marked an improvement from their respective year-ago levels of 1.6 percent and 11.4 percent.
“We remain confident that we have the momentum to grow the business further as we continue to cater to the needs of corporates and small and medium enterprises. We are taking advantage of our IT (information technology) innovation to serve our customers better and faster, particularly in our growing consumer lending business,” AUB president Manuel Gomez said on Tuesday.
AUB’s bottom-line growth was supported by the 29.4-percent year-on-year growth in interest income from loans and receivables and a 42.6-percent expansion in other operating income. Loans and receivables expanded by 29.2 percent year-on-year to P129.6 billion as of end-March. This was driven by commercial loans and other loan segments such as auto, housing, and salary loans, which all posted double-digit growths.
Net interest income increased by 9.1 percent to P1.68 billion during the first quarter from the previous year’s level.
The group’s total assets expanded by 19.8 percent year-on-year to P207.4 billion in the first quarter.
On the funding side, deposits rose 22.6 percent to P166.5 billion as of end-March, fueled by the continued expansion of AUB’s branch network and a more intensified deposit-generation campaign.—DORIS DUMLAO-ABADILLA
