AUB earnings down to P2.3 billion in H1

MANILA, Philippines — Rebisco-led Asia United Bank Corp. (AUB) recorded a double-digit drop in earnings in the first half after raising its provisioning for bad loans almost five times amid the global pandemic.

In a disclosure to the Philippine Stock Exchange (PSE), AUB said it posted a net income of P2.29 billion in the first half, 10.5 percent lower than the P2.56 billion recorded in the same period last year.

Manuel Gomez, president of AUB, said the bank remained strong and resilient amid the impact of the pandemic.

“We are prepared to ride out this current scenario by keeping a healthy balance sheet and staying liquid. We will continue to adapt to the demands of the changing environment,” Gomez said in a statement.

The bank’s provisioning for soured debt amounted to P1.51 billion from January to June, almost five times the P319.9 million in the same period last year.

AUB said its operating income went up by 18.2 percent to P7.07 billion in the first half from P5.93 billion in the same period last year, while expenses surged by 45 percent to P4.35 billion from P2.99 billion on higher provisioning.

The income of the banking arm of the Rebisco Group translated to a lower return on assets of 1.7 percent from 2.2 percent and return on equity of 13.9 percent from 17.6 percent.