Booming loan book lifts AUB income to historic high

Asia United Bank (AUB) posted its highest ever earnings in 2023 on strong loan growth coupled with higher lending rates.

AUB, owned by the Rebisco Group’s Ng family, said on Monday that net income last year soared 32 percent to P8.3 billion, a record in its 26-year history.

“We attribute this vastly improved performance to our robust loan growth, more profitable net interest margin, continuously improving credit quality, and higher operating efficiency,” AUB president Manuel Gomez said in a statement on Monday.

The figures, based on unaudited results, also translated to a return on equity of 18.6 percent and return on assets of 2.38 percent—both historic highs for the lender.

Universal bank leader

“With our stronger performance in 2023, we expect to solidify our lead among the country’s top 10 listed universal banks in terms of compounded annual growth rate on key indicators since AUB was listed on the bourse in 2013,” Gomez said.

AUB’s net interest margin alone jumped 17 percent to P15 billion as total assets expanded by 4 percent to P355.1 billion.

Expenses from nonperforming loans (NPL) fell 27 percent to P1.2 billion while the NPL ratio was at 0.58 percent, which was below the industry’s 1.6 percent.

Overall expenses rose to P6.5 billion, but AUB underscored its easing cost-to-income ratio of 36.3 percent versus 37.6 percent last year.

“[W]ith interest rates expected to remain elevated this year, and global shocks a continuing concern, we have to remain agile to sustain our performance,” Gomez said.

AUB ended the year with total deposits of P292 billion.