Announcements


  • AUB posts double-digit growth in assets, deposits in 1st half

    A double-digit expansion in its deposit base enabled Asia United Bank (AUB) to grow its total assets by 16% to P336 billion in the first six months of the year compared to P289 billion a year ago.

    The publicly listed universal bank posted a 22% increase in total deposits to P282 billion from the previous year's level, fueled mainly by low-cost CASA deposits. On track with AUB's objective to depend on low-cost funding, CASA deposits accounted for 71% of its deposit base, an improvement from the previous year's 68% ratio.

    Taking advantage of its stronger CASA and the prevailing lower interest rate in the market, AUB exercised its call option on its unsecured subordinated debt qualified as tier 2 capital. This led to a Capital Adequacy Ratio of 15.9% versus the previous year's 16.9%.

    Bucking the overall weakness in loan appetite due to sluggish consumer and commercial business activities, AUB was able to keep its net interest income on the same level as a year ago at P5.4 billion.

    However, lower gains from trading and securities resulted in a 15% decline in the consolidated net income of AUB and its four subsidiaries, posting P1.9 billion in the first half from year-ago's P2.3 billion. This translates to a return on equity of 11.0% and return on assets of 1.2%.

    The bank set aside P896 million in provision for loan losses in the first half of 2021. This was 41% lower than the P1.5-billion buffer it allocated in the same period last year to cover the credit risk brought about by the pandemic.

    AUB managed to keep its operating expenses down by 3% to P2.7 billion from P2.8 billion a year ago as it continued to outperform the industry in terms of efficiency. Its cost-to-income ratio stood at 45.1% versus the industry's 53.8%. Growing customer acceptance of its digital channels also helped trim its operating cost as well as increase efficiency and productivity. As of end-June 2021, AUB has a network of 270 branches nationwide, including 48 branches of its 4 subsidiaries.

    "We expect 2021 to be a better year than 2020 due to the vaccine rollouts by the government and the private sector that will help improve consumer confidence and lead to increased economic activity. However, we remain cautious and vigilant about the COVID-19 variants and the economic impact of the ongoing pandemic. We are not letting our guard down," said AUB President Manuel A. Gomez.

  • AUB eyes 30% jump in 2021 net income

    Publicly listed Asia United Bank (AUB) expects its net income to return to its pre-pandemic level of P4 billion this year, 30% or P1 billion higher than in 2020.

    "2021 will definitely be a better year than 2020, as we expect the vaccine rollouts by the government and the private sector to improve consumer confidence and lead to increased economic activity. These, in turn, will boost our commercial and consumer lending business, which remain stable," said AUB President Manuel A. Gomez.

    With the expected pickup in lending activity, the Bank said it is ready to set aside appropriate loan loss provisions in 2021as required. It has already allocated P638 million in loan loss provisions in the first quarter of 2021. While 2020 was a challenging year for many businesses across the globe, AUB and its four subsidiaries managed to generate P3 billion in net income in 2020.

    At its Annual Stockholders Meeting on June 25, held virtually for the second year due to lockdown restrictions, Mr. Gomez said AUB has managed to stay competitive against industry peers despite the pandemic. Based on the consolidated figures of the top 10 universal banks, AUB said it ranked high on all measures of profitability, financial strength, and operational efficiency: 2nd in net interest margin, 4th in return on equity, 4th in return on assets, 3rd in capital adequacy ratio, 1st in cost-income ratio, 1st in deposit growth, and 1st in total assets growth.

    Growing customer acceptance of its digital channels, alongside rationalization of its physical banking operations, led to lower operating cost and increased efficiency and productivity. As of end-December 2020, AUB has a network of 270 branches nationwide, including 48 branches of its 4 subsidiaries.

    "This is also solid proof that our steady investment in our digital channels has been paying off," Mr. Gomez said. Growing reliance on digitalization helped AUB reduce its operating expenses, which minimally increased by 3%, and achieve better cost-to-income ratio of 38.4% in 2020.

    Before the pandemic led to wider acceptance of digital platforms, AUB has already been enhancing its AUB Mobile App to enable fund transfers and the adoption of the national QR code for convenient fund transfers and payments via QR across banks. It has also rolled out QR Ph to its customers and merchants under its AUB mobile app, HelloMoney e-wallet, and AUB PayMate digital payment acceptance platform, making AUB one of only three "issuer-acquirer" participants ready to use and accept the national QR code. In April, AUB expanded its e-wallet partnership with Liquid Group of Singapore to include Thai QR and PayNow Singapore, to become a strong regional player in the QR payments space.

    For 2021, the Bank plans to spend P160 million for its planned digitalization initiatives, which include the continuous deployment of QR Ph to AUB PayMate merchants to enable them to accept QR transactions from any QR Ph compliant e-wallet; expansion of the AUB-Liquid Group partnership with the inclusion of Thai QR and PayNow so AUB PayMate merchants can accept QR payments from Thai and Singaporean tourists; enabling AUB PayMate merchants to accept Shopee Pay e-wallet under the same PayMate payment acceptance system; launch of the PayMate BOTTY and GCash-GLife collaboration, AUB-Tupperware co-branded credit card, and�  network card acceptance so AUB PayMate merchants can accept card payments without the need for a card terminal.

  • AUB increases loan loss reserves by P638 million in Q1 2021

    While COVID-19-related lockdown persists and the economy continues to reel from the impact of the global pandemic, Asia United Bank (AUB) has set aside an additional P638 million in loan loss provisions in the first quarter of 2021. This brings its loan loss coverage to 3.4% of its total loan portfolio.

    The additional loan buffer represents a six fold increase from P93 million in the same period last year. It was also the primary reason the AUB Group's consolidated net income result for the first three months of the year fell to P736 million or 38% lower than P1.2 billion a year ago. The net income translates to a return on equity of 8.5% and return on assets of 1.0%. The group's first-quarter total assets grew 14% to P313 billion from P274 billion, previously.

    Amid the lockdowns that discouraged clients from visiting bank branches, AUB managed to generate total deposits of P261 billion, a 20% increase from the previous year, with low-cost CASA deposits significantly driving the growth. The share of CASA deposits to AUB's total deposit base rose to 73% from 65%, previously.

    "This is solid proof that our steady investment in our digital channels has been paying off," AUB president Manuel A. Gomez said.

    Before the pandemic led to wider acceptance of digital platforms, AUB has already been enhancing its AUB Mobile App to enable fund transfers and the adoption of the national QR code for convenient fund transfers and payments via QR across banks. Last week, it rolled out QR Ph to its customers and merchants under its AUB mobile app, HelloMoney e-wallet, and AUB PayMate digital payment acceptance platform, making AUB one of only three "issuer-acquirer" participants ready to use and accept the national QR code by May -- months ahead of the Bangko Sentral ng Pilipinas' September deadline.

    The growing reliance on digitalization also helps AUB keep its costs down. In the first quarter, operating expenses were down by 4% as the bank continues to demonstrate operational efficiency with a cost-to-income ratio of 47.2%.

  • Great news! InstaPay and PESONet Fund Transfers via the AUB Mobile App and AUB Preferred Online Banking are still FREE until December 31, 2021!

    Fulfill your banking needs online and transfer funds to other banks in real-time, free of charge.

    Download the AUB mobile app today!

    App Store: https://apple.co/2Qp7xJU

    Google Play: https://bit.ly/2QmpHfn

  • AUB named in The Asian Banker's list of strongest banks in Asia Pacific

    In the recent publication of The Asian Banker Strongest Banks, Asia United Bank (AUB) listed as one of the 500 strongest banks by balance sheet evaluation in the Asia Pacific in 2020, landing 52nd place in the region and 3rd in the Philippines.

    The Asian Banker is the leading provider of strategic intelligence in the financial services industry, and has been publishing the Strongest Banks Rankings since 2007 and is considered "the world's first and credible annual ranking."

    The Strongest Banks Ranking was released by www.theasianbanker.com, and the financial performances of the banks in the Asia Pacific Region were rated through six (6) crucial indicators: (1) Scale of the banks' assets relative to domestic gross domestic product (GDP), (2) Balance sheet growth of net loans and deposits, (3) Risk management of the banks' operations, (4) Profitability and sustainability, (5) Strength and credibility of loans disbursed, and (6) Liquidity of assets to meet adverse events requiring cash outflow.

    AUB scored highest in capital adequacy ratio, return on asset, cost to income ratio, loan loss reserves and liquid assets.

    AUB President Manuel A. Gomez shared, "We are extremely pleased of AUB's performance vis-a-vis local banks, as well as in the region. It is proof of AUB's stability and resilience as an institution, and a recognition of the AUBankers' hard work and commitment, despite the challenges we faced during the pandemic."

    Earlier, AUB made it to the Forbes Asia's 2020 "Best Under A Billion" list as it was recognized along with 200 top-performing publicly listed companies with less than USD 1 Billion in revenue and consistent top and bottom-line growth.

    AUB also received the Best Cash Management Bank - Philippines 2020 award in the Annual Global Business Outlook Awards 2020 for its Cash Management Solution, AUB BizKit.

    Asia United Bank started its journey on October 31, 1997, having been one of the few banks granted a full-branch commercial license in 1997. In 2013, AUB joined the league of Philippine banks that have become publicly listed, acquiring universal banking status and continues to fulfill the banking needs of customers through innovative products and services.