AUB net income rises 52% in the first nine months

ASIA UNITED Bank (AUB) saw its bottom line for the first nine months of the year soar 52.1% on back of the bank’s robust lending and deposit-taking activities and trading gains, buoyed further by reduced costs.

In a regulatory filing on Monday, the banking arm of tycoon Jacinto Ng’s Republic Biscuit Corp. (Rebisco) said it booked a 52.1% increase in its net income to P1.8 billion in the January to September period from P1.2 billion during the comparable period last year.

“Despite lowering interest spreads and scant trading opportunities the Group sustained its double-digit growth through increases in loans and deposits, plus lowering of cost for both funds and operations,” the bank said in a statement.

AUB’s total loans during the period rose to P95.8 billion from the year-ago level of P86.4 billion. Likewise, net deposits increased to P121.5 billion from P112.6 billion in 2015.

Net interest income jumped to P4.2 billion in the first nine months from P3.5 billion a year ago.

Total trading gains also climbed to P557.9 billion in the same period from P102.2 billion the previous year.

The bank’s loans-to-deposits ratio also increased to 78.8% during the period from 76.7% in 2015. Still, even as it ramped up its lending activities, the bank’s non-performing loans (NPL) ratio decreased to 0.8% from 1.1% last year, causing its NPL coverage ratio to increase to 104.3% at end- September from 95.7% in the same period in 2015.

Meanwhile, its capital adequacy ratio (CAR) — which measures a bank’s financial strength — stood at 19.38%, higher from 11.61% a year ago.

Its common equity tier (CET) 1 ratio was also increased to 14.82% during the first nine months from 11.04% in 2015.

Both were well above the central bank’s minimum requirement of 10% for CAR and 8.5% for CET1 ratio.

AUB has a total network of 238 branches including its two subsidiaries, namely: its thrift bank arm, Cavite United Rural Bank and Rural Bank of Pampanga.

Shares in the bank went down by 25 centavos or 0.53% to P47.25 each yesterday from Friday’s close of P47.50 apiece. •