ASIA United Bank Corp. (AUB) saw its consolidated net income increase by 36% year on year to P11.3 billion in 2024, mainly driven by double-digit loan growth.
This translated to a return on equity of 21% and a return on assets of 3%, up from 18.6% and 2.4% last year, respectively, it said in a disclosure to the stock exchange on Monday.
The bank noted that the 36% growth in its net profit last year represents a 21% compounded annual growth rate since it was listed in 2013. Its financial statement was unavailable as of press time.
“We have managed to sustain the growth in our profitability since the pandemic, thanks to our robust core business and digital partnerships,” AUB President Manuel A. Gomez said.
AUB’s revenue growth last year was backed by an 11% increase in its net interest income to P16.8 billion, driven by higher interest earnings from loans and investment activities. Its interest expense on deposits also slipped by 3%.
This caused its net interest margin to rise to 5% last year from 4.8% in 2023.
The bank saw a 26% increase in its loan portfolio to P245.4 billion at end-2024 from P194.5 billion the year prior.
“Despite the loan growth, its asset quality further improved, with its nonperforming loan (NPL) ratio at a record low of 0.3% and loan loss provision reduced by 74%. The bank remains sufficiently covered, with an NPL coverage ratio at 113.7%, higher than previous year’s 107.9%,” AUB said.
It added that low-cost current account, savings account or CASA deposits made up 71% of its total deposits last year.
AUB’s non-interest income rose by 48% to P4.1 billion, which it attributed to “improved foreign exchange gains, recovery income, and service charges and other fees from other operating activities.”
Meanwhile, its operating expenses increased by 6% to P6.8 billion last year amid higher compensation, capital expenditures, and business growth-related expenses.
“The bank continues to exhibit efficient resource management in its business generation as evidenced by its 32.8% cost-to-income ratio, even lower than the previous year’s 36.2%,” it said.
AUB’s assets expanded by 9% year on year to P386 billion at end-2024.
Total equity also rose by 19% to P58.4 billion.
Its indicative common equity Tier 1 ratio was at 17% last year, up from 16.9% in 2023. Its capital adequacy ratio also improved to 17.8% from 17.5%.
AUB shares climbed by P1.40 or 1.81% to close at P78.80 each on Monday. — BVR
