Asia United Bank (AUB) and its subsidiaries have maintained a streak of double-digit net income growth for 17 consecutive quarters since the onset of the COVID-19 pandemic in 2020, supported by a more robust lending strategy and growing digital partnerships. For the first quarter of the year, AUB reported a 34% year-on-year increase in consolidated net income, reaching P3.1 billion, compared to P2.3 billion in the same period last year. This growth was reflected in a return on equity (ROE) of 22.3% and a return on assets (ROA) of 3.4%, surpassing the previous year’s figures of 20.0% and 2.8%, respectively.
The bank’s improved profitability was primarily driven by a 34% expansion in its loan portfolio, which grew to P252.6 billion from P188.4 billion a year ago. Despite the strong loan growth, AUB’s asset quality continued to strengthen, with the nonperforming loan (NPL) ratio improving to 0.35% from 0.47% in the prior year—one of the lowest in the industry. The bank also reduced its loan loss provisions by 15%, bringing the provision to P66.0 million from P78.0 million a year earlier. AUB’s NPL coverage ratio remained robust at 119.8%, an increase from the previous year’s 116.7%.
In terms of funding, AUB experienced an 11% increase in interest expense on deposits, attributed to a 9% rise in total deposits, which reached P308.1 billion. However, the higher interest expense was counterbalanced by a 9% increase in interest income, totaling P5.6 billion. As a result, the bank posted a net interest income of P4.3 billion, marking an 8% year-on-year improvement, and a net interest margin (NIM) of 5.1%. AUB’s low-cost deposit base, which consists largely of current and savings accounts (CASA), remained a key funding source, accounting for 69% of its total deposits.
AUB also saw a remarkable 81% surge in non-interest income, reaching P1.3 billion. This increase was driven by growth in non-interest bearing activities such as trading and securities gains, foreign exchange gains, as well as service charges and fees from various business segments, including credit cards, AUB PayMate, HelloMoney, remittance services, trust operations, and branch-related transactions.
Operating expenses rose 9% to P1.8 billion, primarily due to increased compensation, capital expenditures, and other costs related to business expansion. Despite these higher expenses, AUB demonstrated strong resource management, with a cost-to-income ratio of just 32.6%, reflecting its efficient business generation through digital partnerships.
Total assets grew by 11% to P384 billion, while total equity climbed 22% to P61.8 billion, largely driven by improved operating results. AUB remains well-capitalized, with capital ratios well above regulatory requirements. Its indicative Common Equity Tier 1 (CET1) ratio stood at 17.49%, and its capital adequacy ratio (CAR) was 18.19%.
“We have been able to sustain strong profitability growth since the pandemic, thanks to our resilient core business and strategic digital partnerships,” said AUB President Manuel A. Gomez. “While we remain confident in our performance, we are cautiously optimistic about the global economic outlook, given the ongoing trade tensions, potential disruptions in global supply chains, anticipated economic slowdowns in key markets, and escalating geopolitical risks. We will continue to adapt and navigate these global challenges with agility.”
This version tightens the structure, enhances clarity, and uses more professional language while preserving the key financial details. The focus is on the bank’s sustained growth, digital advancements, and cautious optimism for the future, aligned with global economic uncertainty.
