Our Business

Products and Services

AUB provides, directly and through its subsidiaries, a wide range of banking and other financial products and services, including corporate and consumer loans, deposit products, corporate banking, treasury and trust products, cash management solutions, and other services. Such products are offered to a wide range of customers, including consumers, SMEs and large corporations.

Deposit Account Products

Preferred Peso Checking
Preferred Peso Savings
Preferred Savings Plus
Preferred Time Deposit
Preferred Dollar Savings
Preferred Dollar Time Deposit
Preferred Foreign Currency Savings (CNY, EURO, YEN)
Starter Savings
Advantage Check

Credit and Loan Facilities

Short-Term Working Capital Loans
PDC/Receivable Discounting Facilities
Trade Financing Facilities
Medium & Long-Term Loans for Capital Expenditures
Small Business Loan
Domestic Letters of Credit with Trust Receipt Facility
Import Letters of Credit with Trust Receipt Facility
Documents Against Acceptance (DA)
Documents Against Payment (DP)
Packing Credit or Export Loans versus LCs or POs
BSP US$/Peso Rediscounted Loans
Domestic Bills Purchase Line
Foreign Loan/Financing Packages
Corporate Salary Loan Program
Specialized Lending Facilities
AUB Easy MasterCard
AUB Classic MasterCard
AUB Gold MasterCard
AUB Platinum MasterCard
Financing Program for Tourism
Hospital Financing Program
Financing Program for Educational Institutions
Housing Loan Program
Development Program
Syndicated Medium & Long-Term Loans
Open Account (TT)
High-End Motorbike Loan
Auto Loan
Truck Loan
Forklift Loan
Clinic A.I.D. Loan
RN C.A.R.E. Loan

Trust and Investment Services

Employee Benefit Trust
Provident Fund
Pension Fund
Fund Management
Individual/Corporate Portfolio Management
Unit Investment Trust Fund Management
AUB Peso Investment Fund
AUB Equity Investment Fund
AUB Gold Dollar Fund
Estate Planning
Living Trust
AUB Gold Chest Plan
Testimonial Trust

Treasury Services

Fixed-Income Trading and Distribution
Local Currency Treasury Bills/ Treasury Notes/ Bonds
Fixed Floating Rate Corporate Notes
Short and Long-Term Commercial Papers
US$-denominated Certificates of Deposit
US$-denominated US Treasuries
US$-denominated Eurobonds/Notes
Foreign Exchange Trading
Spot Trading
Currency Swaps and Forwards
Foreign Exchange Sale
Spot Trading
Currency Forwards

Cash Management Services

Collection Payment
Electronic Clearing and Conduit Solution (ECCS)
POS Cashout
Check Maker
Human Resource Information System (HRIS)
Payroll Organizer
Online Banking

Special Corporate Services

Escrow Agency
Custodianship Services
Mortgage Trust Indentures

Auxiliary Services

Preferred ATM
AUB RediMoney
Preferred Mobile Banking
Preferred Online Banking
Safe Deposit Box
Deposit Pick-up Service
Manager’s Check/Gift Checks
Fund Transfer (TT/DD)
Electronic and Clearing Conduit Solutions
Hello Pag-IBIG
AUB PayMate

International Banking Services

Letters of Credit / Collection of Clean and Documentary Bill
Foreign and Domestic Remittance
Purchase and Sale of Foreign Exchange

Business Segments

The Group’s main operating businesses are organized and managed primarily, according to the current organizational structure (Exhibit 29-2). Each segment represents a strategic business unit that caters to the Group’s identified markets. The Group’s business segments are:

  1. Commercial - this segment provides lending, trade and cash management services to corporate and institutional customers, which include large corporate, middle market clients and entrepreneurs;
  2. Consumer - this segment offers consumer banking services to retail customers. Consumer lending products include real estate loans, salary loans, motor vehicle loans and pension loans;
  3. Treasury - this segment is responsible for the execution of the Group’s strategic treasury objective set forth in the Group’s Treasury Operating Plan, which outlines the Group’s strategies in terms of proprietary trading, liquidity, risk, capital, tax management, among others. Treasury segment’s functions include managing the Group’s reserve and liquidity position and maintaining its balance sheet by investing in sovereign and corporate debt instruments, commercial paper and other securities in the Philippines and other emerging markets. The Treasury segment is also responsible for managing the Group’s foreign currency exposure, engaging in proprietary trading of currencies and offering foreign exchange instruments to the Group’s corporate customers, as well as the Group’s investment portfolio, which is managed with a view to maximizing efficiency and return on capital;
  4. Branch Banking - this segment offers retail deposit products, including current accounts (interest bearing and non-interest bearing demand deposits), savings accounts and time deposits in pesos and U.S. dollars. Branch banking segment also provides lending to corporate and institutional customers through its own lending centers situated in selected branches; and
  5. Others - this segment includes the Group’s income from trust activities, remittances and gains on foreclosure.

The President, being the Group’s Chief Operating Decision Maker (CODM), monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment assets are those operating assets employed by a segment in its operating activities and are either directly attributable to the segment or can be allocated to the segment on a reasonable basis. Segment liabilities are those operating liabilities that result from the operating activities of a segment and are either directly attributable to the segment or can be allocated to the segment on a reasonable basis. Interest income is reported net, as management primarily relies on the net interest income as performance measure, not the gross income and expense.

The segment results include internal transfer pricing adjustments across business units as deemed appropriate by management. Transactions between segments are conducted at estimated market rates on an arm’s length basis. Interest is charged/credited to the business units based on a pool rate which approximates the marginal cost of funds.