AUB net income hits record P8.3B

SIA United Bank (AUB) saw its preliminary consolidated net income climb to a 26-year high of P8.3 billion in 2023, up 32 percent from the previous year’s P6.3 billion.

The improvement was anchored on “robust loan growth, a more profitable net interest margin (NIM), continuously improving credit quality, and higher operating efficiency,” AUB President Manuel Gomez said in a statement on Monday.

THE BANK’S UNAUDITED fiNANCIAL data showed that income last year translated to a return on equity (RoE) and return on assets (RoA) of 18.6 percent and 2.38 percent, respectively, said to be both “record highs” since its listing in 2013.

NIM was said to have expanded by 17 percent to P15 billion amid a high interest rate environment, while credit quality — measured by net non-performing loans — stood at 0.58 percent, below the industry’s 1.6 percent.

This resulted in a 27-percent year-on-year decrease in loan loss provisions to P1.2 billion, AUB said.

Operating expenses widened to P6.5 billion in 2023, but operatING EFfiCIENCY IMPROVED, WITH THE cost-to-income ratio declining to 36.3 percent from 37.6 percent the year before.

“With our stronger performance in 2023, we expect to solidify our lead among the country’s top 10 listed universal banks in terms of compounded annual growth rate on key indicators,” Gomez added.

“However, with interest rates expected to remain elevated this year and global shocks a continuing concern, we have to remain agile to sustain our performance.”

The bank’s total assets as of endDecember amounted to P355.1 billion, up 4.0 percent from the previous year, while total deposits stood at P292 billion, with the bulk comprising low-cost current account savings account deposits.

Equity grew 23 percent year on year to P49.1 billion, translating to a common equity tier 1 ratio and a capital adequacy ratio of 16.88 percent and 17.49 percent, respectively.

On Monday, AUB shares were up 1.49 percent at P34 each amid a 0.31-percent rise in the benchmark Philippine Stock Exchange index.