Our Business


AUB provides, directly and through its subsidiaries, a wide range of banking and other financial products and services, including corporate and consumer loans, deposit products, corporate banking, treasury and trust products, cash management solutions, and other services. Such products are offered to a wide range of customers, including consumers, SMEs and large corporations.

Deposit Account Products

Cash Management Service

Preferred Peso Checking
Preferred Peso Checking Plus
Preferred Peso Savings
Preferred Savings Plus
Preferred Time Deposit
Preferred Money Max 5
Preferred Dollar Savings
Preferred Dollar Time Deposit
Preferred Renminbi Account

AUB BizKit Checking Account
Payroll Organizer
SSS Remitter
Managerís Check Writing Facility

International Banking Services

Special Corporate Services

Letters of Credit/Collection of Clean
and Documentary Bill
Foreign and Domestic Remittance
Purchase and Sale of Foreign Exchange

Escrow Agency
Custodianship Services
Mortgage Trust Indentures

Trust and Investment Services

Auxiliary Services

Employee Benefit Trust
Provident Fund
Pension Fund
Fund Management
Individual/Corporate Portfolio Management
Pre-need Fund Management
Unit Investment Trust Fund Management
AUB Peso Investment Fund
AUB Equity Investment Fund
AUB Gold Dollar Fund
Estate Planning
Living Trust
AUB Gold Chest Plan
Testimonial Trust

Preferred ATM
AUB RediMoney
Preferred PhoneBanking
Preferred Online Banking
Safe Deposit Box
Deposit Pick-up Service
Managerís Check/Gift Checks
Fund Transfer (TT/DD)
Electronic and Clearing Conduit Solutions

Credit and Loan Facilities

Treasury Services

Short-Term Working Capital Loans
Trade Financing Facilities
Domestic Letters of Credit with Trust Receipt Facility
Import Letters of Credit with Trust Receipt Facility
Packing Credit or Export Loans versus LCs or POs
Domestic Bills Purchase Line
Foreign Loan/Financing Packages
Corporate Salary Loan Program
BSP US$/Peso Rediscounted Loans
Specialized Lending Facilities
Industrial Guarantee Loan (IGLF)
Japan Export-Import Bank Facility (JEXIM)
Japan Export-Import Bank Facility (JEXIM)
Industrial and Support Services
Expansion Program (ISSEP II)
Environmental Inrastructure Support
Credit Program (EISCP I)
SSS-GSIS Financing Program
Financing Program for Tourism
Hospital Financing Program
Financing Program for Educational Institutions
Housing Loan Program
Development Program
Syndicated Medium & Long-Term Loans
Documents Against Acceptance (DA)
Documents Against Payment (DP)
Open Account (TT)

Fixed-Income Trading and Distribution
Local Currency Treasury Bills/ Treasury notes/ Bonds
Fixed Floating Rate Corporate notes
Short and Long-Term Commercial Papers
US$-denominated Certificates of Deposit
US$-denominated US Treasuries
US$-denominated Eurobonds/notes
US$-denominated Credit-Linked notes
Foreign Exchange Trading
Spot Trading
Currency Swaps and Forwards
Cash (notes) Handling


The Groupís main operating businesses are organized and managed primarily, according to the current organizational structure (Exhibit 29-2). Each segment represents a strategic business unit that caters to the Groupís identified markets. The Groupís business segments are:

  1. Commercial - this segment provides lending, trade and cash management services to corporate and institutional customers, which include large corporate, middle market clients and entrepreneurs;
  2. Consumer - this segment offers consumer banking services to retail customers. Consumer lending products include real estate loans, salary loans, auto loans and pension loans;
  3. Treasury - this segment is responsible for the execution of the Groupís strategic treasury objective set forth in the Groupís Treasury Operating Plan, which outlines the Groupís strategies in terms of proprietary trading, liquidity, risk, capital, tax management, among others. Treasury segmentís functions include managing the Groupís reserve and liquidity position and maintaining its balance sheet by investing in sovereign and corporate debt instruments, commercial paper and other securities in the Philippines and other emerging markets. The Treasury segment is also responsible for managing the Groupís foreign currency exposure, engaging in proprietary trading of currencies and offering foreign exchange instruments to the Groupís corporate customers, as well as the Groupís investment portfolio, which is managed with a view to maximizing efficiency and return on capital;
  4. Branch Banking - this segment offers retail deposit products, including current accounts (interest bearing and non-interest bearing demand deposits), savings accounts and time deposits in pesos and U.S. dollars. Branch banking segment also provides lending to corporate and institutional customers through its own lending centers situated in selected branches; and
  5. Others - this segment includes the Groupís income from trust activities, remittances and gains on foreclosure.

The President, being the Groupís Chief Operating Decision Maker (CODM), monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment assets are those operating assets employed by a segment in its operating activities and are either directly attributable to the segment or can be allocated to the segment on a reasonable basis. Segment liabilities are those operating liabilities that result from the operating activities of a segment and are either directly attributable to the segment or can be allocated to the segment on a reasonable basis. Interest income is reported net, as management primarily relies on the net interest income as performance measure, not the gross income and expense.

The segment results include internal transfer pricing adjustments across business units as deemed appropriate by management. Transactions between segments are conducted at estimated market rates on an armís length basis. Interest is charged/credited to the business units based on a pool rate which approximates the marginal cost of funds.