Asia United Bank Corporation (AUB) and its subsidiaries reported a robust 17% increase in net income for the first half of 2024, reaching P6.1 billion compared to P5.2 billion in the same period last year. This marks AUB's highest first-half profit to date.

The bank’s return on assets and return on equity stood at 3.3% and 21.1%, respectively. Despite the lack of an available financial statement at the time of reporting, AUB President Manuel A. Gomez highlighted the resilience of the bank’s core business amid ongoing challenges, stating, "Sustaining our profitability since the pandemic is no mean feat, thanks to our robust core business and digital partnerships. We will remain relentless in our efforts to reach out to the unbanked and underserved, and in helping every Filipino achieve economic mobility."

AUB acknowledged the Philippines' downgraded economic growth forecast due to tariffs, trade uncertainties, geopolitical tensions, and other external factors but affirmed its confidence in meeting performance targets.

The strong financial results were buoyed by a 13% increase in total revenues, which rose to P11.2 billion from P9.9 billion. Earning assets expanded 21% to P382.6 billion, leading to a 7% growth in net interest income to P8.8 billion and a net interest margin ratio of 5%.

Non-interest income surged 40% year-over-year to P2.4 billion, supported by gains in trading, foreign exchange, service charges, and fees from various business lines including credit cards, AUB PayMate, HelloMoney, remittances, trust services, and branch transactions.

Operating expenses increased by 8% to P3.6 billion, reflecting higher personnel costs, capital expenditures, and expenses related to business growth. This resulted in a cost-to-income ratio of 32.2%.

Loan loss provisions rose significantly by 134% due to increased loan volumes. Nevertheless, the bank’s loan portfolio grew 36% to P255.6 billion as of June 30, 2024, from P187.9 billion a year earlier.

Asset quality remained solid with a non-performing loan (NPL) ratio improving slightly to 0.41% from 0.43% the previous year, while maintaining an NPL coverage ratio of 115.8%.

On the funding side, total deposits climbed 16% to P325.8 billion, with a higher proportion (79%) consisting of low-cost current and savings account (CASA) deposits compared to 75% last year.

Total assets grew by 16% to P404.5 billion, while total equity increased by 26% to P64.9 billion, driven largely by retained earnings. Capital ratios also improved, with the common equity Tier 1 ratio reaching 18.13% and the capital adequacy ratio at 18.85%, both higher than their levels a year ago.

Shares of AUB closed up by P1.10, or 1.99%, at P56.50 on Tuesday.