The Philippine Star

AUB se­cures high credit rat­ing

- Business · Finance · Investing · Banking · Bangko Sentral ng Pilipinas · Asia United Bank

Asia United Bank Corp. (AUB) ob­tained a high credit rat­ing of PRS Aa plus (corp.) from lo­cal credit watch­dog Philip­pine Rat­ing Ser­vices corp.

A com­pany rated “PRS Aa” dif­fers from the high­est rated cor­po­rates only to a small de­gree, and has a strong ca­pac­ity to meet its fi­nan­cial com­mit­ments rel­a­tive to that of other Philip­pine cor­po­rates. The “plus” fur­ther qual­i­fies the as­signed rat­ing.

AUB was also as­signed a sta­ble out­look, which in­di­cates that the rat­ing is likely to be main­tained or to re­main un­changed in the next 12 months.

In is­su­ing the rat­ing, PhilRat­ings con­sid­ered AUB’s highly-ex­pe­ri­enced man­age­ment, com­pet­i­tive strat­egy, which is in line with its growth tar­gets, its ro­bust prof­itabil­ity and sat­is­fac­tory fund­ing pro­file.

PhilRat­ings also con­sid­ered the bank­ing in­dus­try’s fa­vor­able out­look, de­spite the slow­down in the growth of the do­mes­tic econ­omy.

De­spite be­ing a mid-sized player in the coun­try’s uni­ver­sal and com­mer­cial bank­ing sec­tor, AUB’s to­tal as­sets reached P251.7 bil­lion as of June 30.

Data from the Bangko Sen­tral ng Pilip­inas (BSP) showed that AUB was the coun­try’s 14th largest bank based on as­sets, de­posits, and loans and re­ceiv­ables, as of the end of the first half. It was also 12th big­gest in terms of to­tal cap­i­tal ac­counts.

AUB is headed by Abra­ham Co as chair­man and chief ex­ec­u­tive of­fi­cer and Manuel Gomez as pres­i­dent.

Co is con­sid­ered to be highly-ex­pe­ri­enced in the bank­ing and fi­nance in­dus­try while Gomez has been with the bank since it opened in 1997.

‘AUB’s fund­ing pro­file was sat­is­fac­tory as of end-2018, with de­posits ac­count­ing for 92.6 per­cent of to­tal li­a­bil­i­ties. The share of cur­rent and sav­ings ac­counts (CASA), which are con­sid­ered as less ex­pen­sive and more sta­ble fund­ing sources, to to­tal de­posits was at 75 per­cent in 2018,” AUB said.

Time de­posits, on the other hand, dou­bled to P47.4 bil­lion in the last two years. To­tal de­posits in­creased by 21.1 per­cent to P193.1 bil­lion.

Dur­ing the first half of 2019, to­tal de­posits fur­ther in­creased by 5.2 per­cent to P203.1 bil­lion due to higher CASA. Fore­cast shows that CASA will con­tinue to com­prise bulk of the bank’s de­posits, go­ing for­ward.

AUB posted a 63.3 per­cent jump in its first se­mes­ter net in­come.

In­ter­est in­come on loans and re­ceiv­ables, which re­mained the largest rev­enue source, jumped by 41.5 per­cent. It ac­counted for 85.4 per­cent of to­tal in­ter­est in­come.

“Over the pro­jected pe­riod, AUB is well­po­si­tioned to sus­tain its per­for­mance as in­ter­est in­come will re­main the pri­mary growth driver, as the bank in­ten­si­fies its com­mer­cial and con­sumer lend­ing ac­tiv­i­ties,” PhilRat­ings said.

AUB will con­tinue to an­chor its com­pet­i­tive strat­egy on its mod­ern tech­nol­ogy plat­form, ex­pand­ing branch net­work, and highly-ex­pe­ri­enced man­age­ment team.

The bank will like­wise con­tinue to rely on its IT in­fra­struc­ture, which will al­low the bank to re­spond to the de­mands of its cus­tomers in a cost-ef­fi­cient man­ner.

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