Announcements

• AUB posts record-high net income in first 9 months
  Asia United Bank (AUB) and its subsidiaries further improved their profitability in the first nine months of the year due to higher revenues and lower loan loss provisions.
  The group posted another record-high P8.6 billion in consolidated net income, 41% more than the year-ago level and surpassing its full-year net income of P8.3 billion in 2023. This translated to a return on equity of 22.4% and return on assets of 3.4%, both higher than the previous year's 19.4% and 2.5%, respectively.
  Net interest margin increased 11% to P12.5 billion due to an increase in interest income from its loan portfolio and investment activities. Its net interest margin ratio rose to 5.3% from the previous year's 4.9%.
  Non-interest income grew from improved foreign exchange gain, recovery income, and service charges and other fees from other operating activities such as credit cards, AUB PayMate, remittance, trust, and other branch-related transactions.
  The bank's operating expenses grew by 6% to P5.0 billion during the first three quarters, largely because of higher staff compensation and capital expenditures as it focused on new business growth opportunities.
  Credit and impairment losses plunged by 93% from P1.1 billion a year ago, as credit quality improved. The bank posted a nonperforming loans (NPL) ratio of 0.53% from the previous year's 0.7%. It remains sufficiently covered from probable losses with an NPL coverage ratio of 120.7% versus the previous year's 107.0%.
  Total assets stood at P352.0 billion, up 2% from the same period last year. Its total loan portfolio grew 6% to P198.9 billion from P188.2 billion a year ago. This is sufficiently funded by deposits at P282.0 billion, with a loan-to-deposit ratio of 70.5%. The bank's low-cost CASA deposits remained the primary source of funding, comprising 70% of total deposits versus the previous year's 66%.
  Total equity increased 25% to P56.6 billion from retained earnings. Its indicative Common Equity Tier 1 Ratio of 19.6% and Capital Adequacy Ratio of 20.4% are both above regulatory requirements.
  "We expect our performance to remain robust, especially as we start reaping the full benefits of the government's National ID system, with AUB being the first Philippine bank to integrate the Philippine Statistics Authority's eVerify. This will hasten our account opening process and Know Your Customer (KYC) compliance, reduce paperwork, improve loan application and approval processes, and enhance security for financial transactions," said AUB President Manuel A. Gomez.
  Through its digital partnerships, AUB has been enabling merchants to accept digital payments from their customers using its all-in-one digital payment acceptance product AUB PayMate and revolutionizing cross-border digital payments through its HelloMoney e-wallet, among others.


• AUB's HelloMoney e-wallet now accepted in Singapore, growing global acceptance to 5 markets
  Partnership with Alipay+ enables HelloMoney to be used for cross-border transactions in top travel destinations
  After becoming the first Philippine bank with an e-wallet that can be used for cross-border mobile payments, Asia United Bank (AUB) is training its sights on expanding its HelloMoney to more major global destinations.
  Through its partnership with Alipay+, the cross-border mobile payment and digitalization solutions operated by Ant International, AUB has recently brought HelloMoney to Singapore where an estimated 200,000 Filipinos live and work, 84% of whom are overseas workers. Singapore also attracted around 700,000 Filipino tourists in 2023.This makes the city-state the fifth market where HelloMoney users can make e-wallet payments, in addition to Japan, South Korea, Malaysia, and Hong Kong SAR.
  HelloMoney users can simply pay via QR code in all merchants that carry the Alipay+ logo. In Singapore, HelloMoney users can scan the Singapore Quick Response Code (SGQR), the country's as well as the world's first unified payment QR code, which is accepted even at small local merchants such as hawker food stalls.
  AUB and Alipay+ also plan to expand its HelloMoney coverage to more destinations, enabling greater convenience for Filipino travelers.
  "The more we bring HelloMoney closer to more users, the more we can make mobile banking easier and help more merchants grow their business globally," said Wilfredo Rodriguez Jr., AUB executive vice president and head of Operations & Information Technology. "With Alipay+'s global presence through its integration with local merchants worldwide, our HelloMoney users will have a wider reach in payment acceptance while ensuring a safe and secure digital transaction."
  Five years after AUB launched HelloMoney, ahead of the COVID-19 pandemic, the number of approved registrations has grown to more than two million as of the first half of 2024. Aside from enabling users to open an account without going to a physical branch and perform bank-to-bank fund transfers, HelloMoney can also be used to buy prepaid load, remit money through Pera Padala, pay via QR code, settle bills, withdraw via ATM, and shop online using the HelloMoney's very own virtual Mastercard. The e-wallet also enables members of state-owned pension fund Pag-IBIG Fund to manage their account and perform banking transactions through the Pag-IBIG Loyalty Card Plus.


• AUB bags highest global award from Wells Fargo
  Asia United Bank (AUB) has recently received the Wells Fargo Operational Excellence Special Recognition Award from leading financial services firm Wells Fargo.
  "Only the top 25% globally gets recognized and receives the award," said Jasper Lim, executive director and senior relationship manager for Banks APAC-South at Wells Fargo.
  The Special Recognition award was given to AUB for consistently showing improvement in the straight-through processing (STP) rate for the past three years: 99.38% in 2021, 99.59% in 2022, and a near perfect 99.9% in 2023. The Special Recognition Award was a first for AUB, which has previously been awarded for Operational Excellence, Wells Fargo's highest global operational award.
  "The award is a concrete testament to the strong partnership between AUB and Wells Fargo over the years, particularly recognizing AUB's ability to process USD payments for its customers in a very efficient manner by channeling such payments to Wells Fargo. With majority of the USD payments being processed straight-through (no manual intervention), funds are being sent to recipients in a timely manner. Wells Fargo was one of the very few US banks that saw the potential of AUB and has since supported AUB in the payments business," Mr. Lim added.
  "This award is a result of the consistent collaboration among our Treasury, IT, and Quality Assurance in ensuring 99.9% STP of transactions and with minimal inquiry at 1.4% of the volume," said Zita Los Banos, AUB first vice president and head of Treasury Operations.
  International payments are an integral component of banking relationships in today's globalized economy. The responsibility for quickly and efficiently processing them is a shared effort by all financial institutions involved.
  Challenges in global payments have been on the rise due to the shift in consumer and business behavioral patterns, enabled by advances in technology and the availability of unconventional payment channels coming to market. These challenges include cyberfraud, money laundering and terrorist financing activities that continue to threaten the stability of the banking system as money payments become more complex, and go through several channels before reaching the ultimate beneficiaries.
  "This is why getting the top recognition from our global payments partner Wells Fargo is no mean feat," said Wilfredo E. Rodriguez Jr., AUB executive vice president and head of IT and Operations. "We continue to improve on our digital capabilities while being strictly adherent to the requirements on industry standards for the SWIFT environment, which also includes the security requirements of the Bangko Sentral ng Pilipinas, as well as all regulatory requirements on ML/TF checking and validations."


• AUB first bank to integrate Digital National ID
  Asia United Bank (AUB) recently became the first Philippine bank to integrate with the Philippine Statistics Authority's (PSA) eVerify system to authenticate a person's registration with the National ID System.
  "With this, all you need to open a HelloMoney account is to show your face," said AUB Chief Compliance Officer Claire dela Rosa in a panel discussion on "National ID Success in Ease of Doing Business" at the PSA's 3rd Philippine Identity Summit held Sept. 16 in Quezon City.
  After receiving its PSA accreditation as a "Relying Party" on January 31, 2024 and becoming the first local bank to receive a security token from the PSA last July 30, 2024, AUB has been using the eVerify system for its electronic Know Your Customer (KYC) customer identity verification. This means the bank no longer requires customers to present a physical identification card when opening an account on its ewallet HelloMoney as eVerify features advanced facial recognition technology for real-time matching of an individual's face, among other registered information, with the National ID registry. It also has a feature called the National ID Check to verify the authenticity of any format of the National ID, including the Digital National ID.
  "AUB knows from the start the significance of the eVerify system as the most effective way to check a customer's identity when opening an account. It's a game changer- it will change how banking transactions are done," said Ms. Dela Rosa.
  After HelloMoney, AUB also plans to integrate eVerify with its branch banking service. This means when a potential customer already registered with the PSA's National ID system opens a new account with AUB, they will no longer be required to present two valid IDs and fill out forms, explained Ms. Dela Rosa. "Your face is your ID. So you just need to look at the camera on the iPad in our branch for facial recognition and have a liveness test."
  She also envisioned that the eVerify system can be used as well for over-the-counter cash withdrawals, doing away with signatures as proof of authorization or a one-time password for mobile banking transactions.
  In addition, eVerify also helps banks prevent identity fraud using the "your face as your identity" technology. Even with the proliferation of deepfakes (computer-created artificial videos),security is ensured as "the safekeeping of client data remains the responsibility of the bank. What we as financial institutions get from the PSA are the e-verification and e-KYC information presented during the National ID registration. Your identity cannot get verified if you do not have the correct biometrics and you did not go through the liveness test. It's the best security measure the Philippines have so far," Ms. Dela Rosa said.
  As of July 26, 2024, there are 33.5 million physical cards yet to printed by the PSA out of nearly 89 million Filipinos who registered with the National ID system. Ms. Dela Rosa said these 33.5 million Filipinos no longer have to wait for the delivery of their physical cards as the Digital ID now gives access to Filipinos and resident aliens to open accounts and perform various bank-related transactions, thus increasing bank lending activities and promoting financial inclusion.
  The PSA, in partnership with the Department of Information and Communications Technology, launched the National ID along with authentication platforms, National ID eVerify, and National ID Check, last June 10.Those registered with the National ID system can access and view their Digital National ID via https://national-id.gov.phor download the eGovPH app.
  "We take pride in being one of the early adopters of the National ID system, as this pioneering initiative supports AUB's aspiration to become the Digital Partner of Choice, advocating for open collaboration and helping others share in our success and responsibility to deliver financial inclusion," said AUB President Manuel A. Gomez. Through its digital partnerships, AUB has been enabling merchants to accept digital payments from their customers using its all-in-one digital payment acceptance product AUB PayMate and revolutionizing cross-border digital payments through its HelloMoney e-wallet, among others.


• AUB posts 27% increase in net income in 1st half
  Higher revenues and improving credit quality enabled Asia United Bank (AUB) and its subsidiaries to maintain their record-setting profitability in the first six months of the year. The group posted P5.2 billion in consolidated net income, 27% higher than the year-ago level, and equivalent to a return on equity of 21.9% and return on assets of 3.1%.
  Net interest margin widened by 10% to P8.2 billion as interest income from its loan portfolio and investment activities rose. This resulted to a net interest margin ratio of 5.4% from the previous year's 5.0%.
  "Thanks to the improving business environment, AUB continues to deliver consistent performance in the first half of the year. To remain a 'challenger bank' among the country's top listed universal banks, we must become the 'Digital Partner of Choice,' advocating for open collaboration and helping others share in our success and responsibility to deliver financial inclusion," said AUB President Manuel A. Gomez.
  In the first half, AUB saw its operating expenses increase by 7% to P3.3 billion, mainly due to higher compensation, capital expenditures, and investments in further business growth. Despite the increase, the bank continues to show operational efficiency, with a cost-to-income ratio of 33.5%.
  The bank's higher profitability was also largely due to improved asset quality, as shown in its nonperforming loans (NPL) ratio of 0.43%, lower than the previous year's 0.9%. This led to a 92% decline in loan loss provision to P78.0 million from P952.0 million, previously. The bank remains sufficiently covered from probable losses with an NPL coverage ratio of 150.8% from 114.8% a year ago.
  AUB's total assets stood at P349.0 billion, up 6% from the same period last year. Its total loan portfolio at P187.9 billion is sufficiently funded by P281.1 billion in deposits, with a loan-to-deposit ratio at 66.8%. Low-cost deposits (current account/savings account) remain the primary source of funding for AUB, comprising 75% of total deposits, an improvement from previous year's 72%.
  Total equity increased 18% to P51.6 billion from retained earnings. Indicative Common Equity Tier 1 Ratio was at 17.8% and its Capital Adequacy Ratio was at 18.6%, both above the regulatory minimum.
  During its annual stockholders' meeting on June 28, 2024, AUB's board of directors declared a cash dividend of P2.33 per share payable in two tranches: the first, at P1.33 per share, is payable on July 31, 2024; and the second, at P1 per share, is payable on September 20, 2024.
  Through its digital partnerships, AUB has been enabling merchants to accept digital payments from their customers using its all-in-one digital payment acceptance product AUB PayMate and revolutionizing cross-border digital payments through its HelloMoney e-wallet, among others.
  The bank is also one of the early adopters of the government's National ID system, which is expected to hasten banks' account opening and Know Your Customer (KYC) compliance, reduce paperwork, improve loan application and approval processes, and enhance security for financial transactions.