Lending lifts Asia United Bank 2016 profit by 52%

ASIA UNITED Bank Corp. (AUB) booked a double digit increase in its bottom line in 2016 on the back of robust lending activity.

The Jacinto L. Ng-led bank saw its net income reach P2.3 billion by end-2016, soaring by 52% from the P1.5 billion it made in 2015.

“We will continue to show strong growth in our core lending business to corporates and SMEs (small and medium enterprises),” AUB president Abraham T. Co was quoted as saying in a statement filed with the stock exchange on Tuesday.

“We are also making headways in retail products, auto loans, mortgages, salary loans, and remittances,” he added.

AUB’s gross interest revenue also climbed 19% year-on-year to P7.3 billion, backed by a 22% expansion in both its commercial and consumer loans.

That brought its net interest income to P5.7 billion last year, 19% higher from the P4.8 billion in 2015.

Mr. Co had said that the bank expects to boost its total loan book by 20%

this year on plans of expanding the lender’s network.

According to the bank chief, bulk or 87% of total loan portfolio are corporate loans while the rest are retail.

In 2015, the listed lender had a total network of 238 branches including those of its two subsidiaries — its thrift banking arm, Cavite United Rural Bank, and the Rural Bank of Pampanga.

Shares in AUB were unchanged at P48.85 apiece on Tuesday. —