Corporate Profile

Business Development

History

Asia United Bank Corporation (AUB) is among the very few banks that was granted a full-branch commercial bank license in 1997 and is operating until this day. In 2013, AUB joined the league of Philippine Banks that have become publicly listed and acquired universal banking status.

AUB was registered with the Securities and Exchange Commission (SEC) on October 3, 1997. Its registered office and principal executive offices are located at Joy-Nostalg Center, 17 ADB Avenue, Ortigas Center, Pasig City, Philippines.

AUB was granted the authority to operate as a commercial bank under the Monetary Board (MB) Resolution No. 1149 dated September 3, 1997 and commenced operations on October 31, 1997. In 2012, it obtained approval from the Bangko Sentral ng Pilipinas (BSP) to upgrade its license into expanded commercial banking status. In 2013, the Bank was granted an authority to operate as a universal bank under MB Resolution No. 356 dated February 28, 2013. The universal banking license authorizes, AUB, in addition to its general powers as a commercial bank, to exercise the following: (1) Powers of an investment house, including securities underwriting and trading, loan syndication, financial advisory, private placement of debt and equity securities, project finance and direct equity investment, and (2) Power to invest in allied and non-allied enterprises, subject to regulatory caps on the amount of investment relative to the Bank’s capital and ownership percentage.

AUB began as a joint venture between a consortium of Filipino Industrialists (namely Jacinto L. Ng, Sr., Luis U. Ang and Jose S. Sandejas) and Taiwanese investment banks (namely China United Trust & Investment Corporation and China Development Industrial Bank). As of December 31, 2013, the Bank is now a publicly listed company with three principal/substantial stockholders: Republic Biscuit Corporation, Kuo Yu Philippines Holdings Corporation, and Lambda Holdings Corporation.

To expand its business and distribution network, AUB has three subsidiaries as of December 31, 2022 as shown in the table below:

Over the past three years, AUB has been steadily growing by building a strong and loyal client base through its careful and focused client generation activities and technological innovations for both its deposit-taking and lending businesses.

*Includes micro-banking offices

In 2020, the group, faced with challenges of Covid-19 pandemic, resulted in a P3.0 billion net income, 32% lower than previous year’s net income of P4.4 billion. The group managed to increase its Net Interest income by 15% from P9.4 billion in 2019 to P10.8 billion in 2020 mainly due to increase in low-cost deposits. The group also increased its non-interest bearing income by 55% from P2.7 billion in 2019 to P4.2 billion in 2020 mainly due to Gain on sale of investment securities at amortized cost.

These increases were offset, however, by the P4.3 billion increase in provision for losses from P1.1 billion in 2019 to P5.4 billion in 2020 due to increased provision in loans portfolio as the bank considered the effect of the pandemic.

In 2021, as the business environment in the country slowly recovered, the group got a P4.1 billion net income, 34% higher than previous year’s net income of P3.0 billion. The group managed to reduce its provision for credit losses to P2.4 billion in 2021 from P5.4 billion in 2020.

In 2022, AUB’s full year 2022 net income soared 54% to P6.3 billion, boosted mainly by increased loan volume, higher margins and improvement on loan loss provisions. Total assets reached P340 billion, reflecting a 7% growth year-on-year, taking off from 2021vs2020 flattish growth of 1%.

To view the company’s annual and quarterly financial disclosures please visit this page: https://www.aub.com.ph/ir/