Asia United Bank (AUB) and its subsidiaries announced today that higher revenues and sustained operational efficiency drove significant profitability through the first three quarters of 2025. The group recorded a net income of P9.4 billion, representing a strong 9% increase from P8.6 billion reported in the same period last year.
This solid performance translated into an impressive Return on Equity (ROE) of 20.4% and a Return on Assets (ROA) of 3.2%, affirming AUB’s strong financial health and effective capital deployment.
The bank’s success was underpinned by double-digit growth in core businesses:
- Revenue Growth: Total operating income increased by 10% year-on-year to P17.2 billion. Net interest income grew 8% to P13.5 billion, maintaining a healthy net interest margin ratio of 5.0% on the back of a 22% surge in earning assets.
- Loan and Deposit Expansion: AUB’s total loan portfolio expanded robustly by 29% year-on-year to P256.9 billion, while total deposits grew 19% to P336.2 billion. Crucially, low-cost current account/savings account (CASA) deposits remain the primary funding source, comprising 78% of total deposits.
- Operational Efficiency: Despite higher operational and growth-related costs, AUB demonstrated sustained efficiency, maintaining a low Cost-to-Income ratio of 32.2%.
- Non-Interest Income: Non-interest income jumped by 18% to P3.7 billion, fueled by stronger trading and foreign exchange gains, alongside higher fee-based revenues from digital channels including AUB PayMate and HelloMoney.
“Sustaining our profitability is no mean feat, considering the heightened risks in our operating environment, both domestically and globally. But we managed to post double-digit growth rates in our core businesses,” said AUB President Manuel A. Gomez.
The bank’s asset quality continued to improve even with aggressive loan volume expansion. The Non-Performing Loan (NPL) ratio improved to 0.36% from 0.53% a year ago, reflecting sound underwriting practices. NPL coverage remains robust at 117.14%.
AUB maintains adequate capitalization, with its indicative Common Equity Tier 1 Ratio at 18.75% and Capital Adequacy Ratio (CAR) at 19.50%, well above regulatory requirements.
Mr. Gomez noted that AUB remains focused on growth opportunities in digital partnerships to extend financial services, particularly to the unbanked and underserved.
Recent key partnerships underscore this digital drive:
- Social Security System (SSS): AUB partnered with SSS to introduce the SSS Pay Card, enabling over 40 million SSS members to conveniently receive benefits and loan proceeds via the HelloMoney e-wallet app.
- Global Remittance: A collaboration with TerraPay Holdings Limited, a London-based global payments infrastructure company, integrated the Send Money Abroad feature into HelloMoney, allowing Overseas Filipinos to transfer funds quickly and securely across the globe.
- Microinsurance: The bank also collaborated with leading digital insurer Singlife Philippines to bring the benefits of microinsurance to millions of Filipinos through HelloMoney.
