AUB net income climbs to P3.2B

ASIA United Bank Corp. (AUB) saw its net income rise by 1.8% in the first quarter, supported by the continued growth of its core business.

The bank’s net profit went up to a record P3.2 billion for the three-month period from P3.14 billion a year ago, it said in a disclosure to the stock exchange on Monday.

This translated to a return on assets of 3.2% and a return on equity of 19.3%, both down from 3.4% and 22.3% a year ago.

“(O)ur historic-high financial results serve as a powerful validation of our ability to maintain stability and growth in a ‘permacrisis’ environment,” AUB President Manuel A. Gomez said. “Our robust internal controls and investment strategies are built to withstand extreme external shocks while delivering world-class service.”

Net interest income climbed by 16.8% year on year to P5.02 billion in the first three months from P4.31 billion. This translated to a net interest margin of 5.3%, up from 5.1% a year ago.

Interest income grew by 11.9% to P6.29 billion from P5.62 billion, which it attributed to its loan portfolio’s growth, while interest expense declined by 2.16% to P1.28 billion from P1.31 billion amid lower high-cost deposits.

“AUB saw sustained momentum across its core lending and deposit-taking operations,” it said.

The bank’s loans and receivables grew by 9.4% year on year to P276.2 billion.

On the funding side, total deposit liabilities increased by 8.9% to P335.5 billion. Current and savings account deposits made up 78% of this total, up from 69% a year ago, “reflecting a robust and low-cost funding base,” it said.

This translated to a loan-to-deposit ratio of 82.3%, edging up from 82% previously.

Meanwhile, AUB’s other operating income went down by 7.67% to P1.18 billion from P1.28 billion, mainly due to lower fee earnings and foreign exchange gains.

Service charges, fees and commissions decreased by 14% to P411.3 million. Foreign exchange gains dropped by 9% to P192 million mainly due to fluctuations in the currency market.

As a result, total operating income was at P6.19 billion in the first quarter, up by 10.81% from P5.59 billion a year ago.

Meanwhile, the bank’s operating expenses rose by 17.39% to P2.22 billion in the first three months from P1.89 billion in the same period last year.

It said it “proactively” increased its loan loss provisions to P331.29 million from just P65.89 million a year ago.

Cost-to-income ratio improved to 30.4% in the first quarter from 32.6% a year ago.

Meanwhile, the bank’s nonperforming loan (NPL) ratio stood at 0.44% at end-March, up from 0.38% at end-2025 and 0.4% a year prior.

Its NPL coverage ratio was at 111.2%.

AUB’s assets stood at P422.52 billion at end-March, growing by 10% from P384.09 billion a year ago.

Total equity stood at P70.76 billion in the first quarter, up by 14.43% year on year from P61.84 billion.

Its capital adequacy ratio rose to 19.28% from 18.19% a year ago, while common equity Tier 1 ratio went up to 18.73% from 17.49%.

“Both metrics remain comfortably above regulatory requirements, providing the bank with substantial capacity to cushion against macroeconomic pressures and support future expansion,” it said.

AUB’s shares climbed by 70 centavos or 1.61% to close at P44.10 each on Monday. — Aaron Michael C. Sy