November 1, 2025 | 12:00am
MANILA, Philippines — Asia United Bank (AUB) and its subsidiaries reported a nine percent increase in net income to P9.4 billion from January to September compared to P8.6 billion a year ago, driven by higher revenues and improved operational efficiency.
This translated to a return on assets of 3.2 percent and a return on equity of 20.4 percent as of end-September, sustaining the bank’s double-digit profitability.
Total operating income rose by 10 percent to P17.2 billion from P15.6 billion, supported by a 22-percent growth in earning assets to P390.6 billion.
Net interest income climbed by eight percent to P13.5 billion, keeping the bank’s net interest margin ratio at five percent.
Non-interest income also expanded by 18 percent to P3.7 billion, driven by stronger trading and foreign exchange gains as well as higher fee-based revenues from credit cards, AUB PayMate, HelloMoney and remittance transactions.
Operating expenses increased by 10 percent to P5.5 billion due to higher compensation, capital expenditures and growth-related costs. Despite this, AUB maintained a low cost-to-income ratio of 32.2 percent, reflecting sustained operational efficiency.
AUB president Manuel Gomez said the bank’s ability to sustain profitability amid economic challenges highlights the strength of its core businesses.
“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,” Gomez said.
The bank’s total loan portfolio jumped by 29 percent year-on-year to P256.9 billion from P198.9 billion, while total deposits rose by 19 percent to P336.2 billion. Low-cost deposits accounted for 78 percent of total deposits, up from 76 percent a year earlier.
To support its growing loan portfolio, AUB increased its loan loss provisions by 141 percent year-on-year. Despite higher lending volumes, asset quality continued to improve, with the non-performing loan ratio declining to 0.36 percent from 0.53 percent a year ago and NPL coverage at 117.14 percent.
Total assets expanded by 19 percent to P417.1 billion, while total equity rose by 16 percent to P65.7 billion, mainly from retained earnings.
AUB remained well-capitalized, with a common equity tier 1 ratio of 18.75 percent and a capital adequacy ratio of 19.5 percent.
“We remain on the lookout for growth opportunities in the horizon, particularly in digital partnerships,” Gomez said.
“It is through this that we can offer digital payment solutions such as our all-in-one digital payment acceptance product AUB PayMate, as well as revolutionize cross-border digital payments through our HelloMoney e-wallet,” he said.
