AUB profit jumps 66% in 9 months

MANILA, Philippines — Rebisco Group-led Asia United Bank (AUB) is confident of finishing the year strong as its net income jumped by 66 percent to P3.8 billion from January to September compared to P2.3 billion in the same period last year.

AUB president Manuel Gomez said 2019 is a remarkable year for the country’s 14th largest lender in terms of assets and is looking forward to finishing the year strong.

 “This growth is a result of the successful execution of our strategy from the beginning of the year, which remains a testament of the trust and confidence that our customers give us. We are confident that this growth will continue to motivate us to be the primary enablers our customers’ envisioned success,” Gomez said.

The bank said in a statement the 38 percent surge in interest income from loans and receivables boosted its bottom line during the first nine months.

AUB’s gross interest income went up by 39 percent to P10.4 billion as of end-September from P7.5 billion in the same period last year, while its net interest income increased by 24 percent to P6.9 billion from P5.6 billion.

This translated to a 4.3 percent net interest margin, slightly higher than last year’s 4.2 percent.

The listed bank recently raised P7 billion through its maiden peso-denominated bond issuance, more than double the initial offer size of P3 billion, as investors swarmed the fund raising activity.

Proceeds from the bond issuance, which carried a coupon rate of 4.625 percent per annum, will be used for general corporate purposes.

AUB said the fund raising activity was done using a fully digital platform, showcasing the bank’s digital solutions that aim to make banking easier and more convenient.