AUB posted banner year in ’24; return on equity at 21%
Ng family-led Asia United Bank (AUB) saw its net income in 2024 zoom to a record P11.3 billion on the back of its growing portfolio and a decline in bad loans.
In a stock exchange filing on Monday, the listed bank said its earnings last year had surged by 36 percent from P8.3 billion in 2023.
Its loan portfolio jumped by 26 percent to P245.4 billion. Despite this, its nonperforming loan ratio, a key indicator of asset quality, improved to 0.3 percent from 0.58 percent.
A sharp decline in expenses for bad loans likewise contributed to profitability, with loss provisions falling by 74 percent.
“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 Gomez said in a statement.
Noninterest income, meanwhile, surged by 48 percent to P4.1 billion on improved foreign exchange gains, recovery income and services charges and other fees.
AUB’s financial performance translated to a return on equity of 21 percent from 18.6 percent. Return on assets reached 3 percent from 2.4 percent.
As of end-December, the bank’s assets grew by 9 percent to P386 billion.
Apart from its traditional banking services, AUB also promotes digital banking through its mobile payment app PayMate and e-wallet platform HelloMoney.
As of this month, AUB had 94,000 new HelloMoney users, adding to its network of 6 million, which the company expects to grow further following its partnership with the Philippine Statistics Authority. Under the agreement, Filipinos who have registered for the national ID system may open HelloMoney accounts without charge.
“We hope to sustain our growth momentum as we start reaping the full benefits of the government’s national ID system,” Gomez said, adding that it would help hasten AUB’s account opening process, reduce paperwork and improve loan application processes, among others.
