Announcements


  • AUB posts record-high 20.0% ROE, 2.8% ROA

    Asia United Bank (AUB) and its subsidiaries continued to post record-setting profitability in the first three months of the year, with a return on equity (ROE) of 20%, the highest in the bank's 27-year history. It also registered a return on assets (ROA) of 2.8%, the highest since AUB's initial public offering in 2013.

    Based on unaudited financial results, AUB saw its consolidated net income increase by 16% for the first quarter to P2.3 billion from the previous year. This was attributable to higher net interest margin (NIM) and lower loan loss provisions.

    Amidst the environment of rising interest rates, its net interest margin rose 10% to P4 billion due to revenue growth from the bank's loan portfolio and investment activities. This resulted to a NIM ratio of 5.2% from the previous year's 4.8%.

    Operating expenses for the first quarter grew 12% due to higher compensation, capital expenditures, and business growth-related expenses. Despite the increase, AUB has maintained its operational efficiency, as it continued to shift to digital platforms and automation.

    Asset quality continues to improve with a nonperforming loans (NPL) ratio of 0.47% from the previous year's 1.0%. This led to an 89% drop in loan loss provision to P78 million than previous year's P709.2 million. The bank remains sufficiently covered from probable losses with NPL coverage ratio at 116.7% versus the previous year's 113.0%.

    Total assets stood at P346.7 billion, up 6% from the same period last year. Total loan portfolio was at P188.3 billion, sufficiently funded by P283.3 billion in deposits and with loan-to-deposit ratio at a healthy 66.5%. The bank's low-cost deposit CASA remains the primary source of funding, comprising 73% of total deposits.

    Total equity increased 18% to P50.7 billion from retained earnings. It has an indicative Common Equity Tier 1 Ratio of 17.55% and a Capital Adequacy Ratio of 18.29%, both above regulatory requirements.

    In December 2023, AUB paid 50% stock dividend and special cash dividend of P0.33 per share. Prior to the stock dividend payment, it has already paid out P2 per share in two tranches (P1 each in July and in September 2023).

    "We aim to deliver consistent performance throughout 2024, so we can remain as a 'challenger bank' among the country's top listed universal banks," said AUB president Manuel A. Gomez. "With interest rates expected to remain elevated throughout the year, and global shocks a continuing concern, we will remain agile to sustain our performance."

  • AUB: High US rates continue to boost USD assets

    Dollar-denominated assets will continue to offer favorable yields as the U.S. Federal Reserve keep monetary policy tight and U.S. interest rates expected to peak this year.

    Asia United Bank (AUB) Senior Vice President and Head of Trust Andrew Chua made the projection after the GDF was named the "Best Managed Fund" in the Dollar Medium-Term Bond Fund category at the CFA Society Philippines' 2024 Best Managed Fund of the Year Awards held April 24. A total of 136 qualified funds from 17 investment houses and trust Institutions joined this year's awards.

    AUB was able to sustain its eighth-year winning streak due to the GDF's consistently stellar performance. The Fund performed relatively well compared to the benchmark 5-year U.S. Treasury rates. As of December 2023, the Fund had an annualized return of 7.47% net, outperforming the benchmark's performance of 6.23% annualized return for the same period.

    The GDF enables retail investors access to the U.S. dollar bond market normally reserved for foreigners and high net worth investors. It offers flexibility as returns can be withdrawn any time after the minimum holding period and investors benefit from a team of professional fund managers that will ensure their investments are kept safe as risk and returns are balanced appropriately. The Fund invests in a diversified portfolio of fixed income securities and targets to outperform a benchmark rate equivalent to the rolling yield of the 5-year U.S. Treasury Notes, net of fees.

    "With U.S. interest rates expected to peak this year, the Fund will continue to benefit from the higher accruals on outstanding investments as a result of the higher interest rate environment and will potentially book gains on its marked-to-market with the tapering of interest rates by next year," said Mr. Chua.

    Local investors in search of higher-yielding assets will be well positioned if they load up on U.S. dollar assets such as AUB's GDF. "Given the U.S. Fed closing in on the end of the rate hiking cycle, the Fund will be gradually increasing its duration while maintaining safe and diversified securities as well as hold sufficient cash to manage liquidity risk," Mr. Chua added.

  • IMPORTANT ADVISORY: SYSTEM MAINTENANCE

    In order to continue serving you better and improve our services, we will be conducting a scheduled system maintenance on May 12, 2024 (Sunday) from 12:00AM to 2:00AM.

    Kindly be advised that some of our services may be unavailable during this period. We encourage you to schedule your banking transactions ahead of this schedule. We apologize for any inconvenience.

    Thank you for understanding.

  • AUB taps Creamline as HelloMoney Brand Ambassador

    Asia United Bank (AUB) partnered with its parent company Republic Biscuit Corporation (REBISCO) to help promote financial inclusion through REBISCO-owned professional women's volleyball team Creamline Cool Smashers.

    In a contract signing event held last March 5, 2024 at the Nostalg Ballroom, Joy Nostalg Center, AUB Chairman Jonathan Ng said, "By partnering with the Creamline Cool Smashers, we are bringing the benefits of AUB's HelloMoney to a greater number of people."

    HelloMoney is an e-wallet AUB launched in 2019 as part of its digital arsenal that include pioneering initiatives and innovations ; from end-to-end digital account opening, to enabling clients to make banking easy through their mobile phone and merchants to sustain their businesses.

    Wilfredo Rodriguez Jr., AUB executive vice president and head of its Operations and Technology Group, said: "The Creamline Cool Smashers' success has been instrumental in inspiring the youth through the power of sports. By being brand ambassadors of HelloMoney, we can create a positive impact through financial inclusion and sports."

    Alan Acero, team manager of Creamline Cool Smashers, welcomed the collaboration that will help advance the team's goals, on and off the field. "We envision this relationship to be a mutually supportive one. We hope to let HelloMoney be promoted through us in a creative and compelling manner, especially with a huge, active, and highly engaged volleyball fan base," he said.

    The excitement surrounding the partnership was further underscored by Alyssa Valdez, the captain of the Creamline Cool Smashers: â??We gained a new teammate in HelloMoney. With this new addition, we do hope we can become better and achieve greater things together. With HelloMoney by our side, there's no limit to what we can achieve."

    In photo are key executives from AUB (top row, center, in white jackets): Leslie Villegas, vice president and head of Financial Technology Unit; Eileen Ng, Office of the Chairman; Wilfredo Rodriguez Jr.; and key executives from Creamline (eight to ninth from left) Jonathan Ng, chairman of AUB and Action Republic Corporation, and Alan Acero, team manager of Creamline Cool Smashers. Present as well is Ms. Alyssa Valdez, team captain, and the rest of the Creamline Cool Smashers.

  • AUB posts record-high profitability in 2023

    Asia United Bank (AUB) and its subsidiaries posted a consolidated net income of P8.3 billion in 2023, a 32% increase from the previous year's P6.3 billion and the highest in its 26-year history.

    Based on unaudited financial results, the latest income figure translates to a return on equity (ROE)of 18.6% and a return on assets (ROA) of 2.38% - both record highs since the bank had its initial public offering (IPO) in 2013. The ROE and ROA rose from the previous year's 16.1% and 1.9%, respectively.

    "We attribute this vastly improved performance to our robust loan growth, more profitable net interest margin (NIM), continuously improving credit quality, and higher operating efficiency," said AUB president Manuel A. Gomez.

    Amidst the environment of rising interest rates, AUB saw its NIM widen by 17% to P15billion from 2022. Credit quality, as measured by net non-performing loans (NPL), stood at 0.58%, well below the industry's 1.60%. This led to reduced loan loss provisions of P1.2 billion, 27% lower than in 2022. While operating expenses rose to P6.5 billion in 2023, the bank managed to improve its operating efficiency, as measured by its cost-to-income which further dropped to 36.3% from the previous year's 37.6%.

    Total assets grew by 4% to P355.1 billion while total deposits rose to P292 billion, with the bulk still comprised of low-cost CASA deposits.

    Equity increased by 23% to P49.1 billion year-on-year, translating to a common equity tier 1 ratio of 16.88% and a capital adequacy ratio 17.49% - both well above the regulatory threshold. In 2023, AUB declared a 50% stock dividend and paid out cash dividends of P2.33 per share (P2 pre stock dividend and P0.33 post stock dividend) in three tranches.

    "With our stronger performance in 2023, we expect to solidify our lead among the country's top ten listed universal banks in terms of compounded annual growth rate (CAGR) on key indicators since AUB was listed on the bourse in 2013," said Mr. Gomez. "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."