Asia United Bank Corporation Still Among Fastest-Growing Banks

​A double-digit growth in loan portfolio and a steady decline in loan loss provisions enabled Asia United Bank (AUB) and its subsidiaries to sustain their profitability and further strengthen their reputation as one of the fastest-growing local banks in terms of compounded annual growth (CAGR) in 2024.

The group posted a consolidated net income of P11.3 billion, 36% more than the year-ago level of P8.3 billion, and representing a 21% CAGR since AUB became a publicly listed universal bank in 2013. Its 2024 net income translated to a return on equity of 21% and a return on assets of 3% — not only higher than the previous year’s 18.6% and 2.4%, respectively, but also among the highest in CAGR from 2013 to 2024.

“We have managed to sustain the growth in our profitability since the pandemic, thanks to our robust core business and digital partnerships. AUB is able to reach out to many Filipinos, including the unbanked and underserved, to offer digital payment solutions such as our all-in-one digital payment acceptance product AUB PayMate, as well as revolutionize cross-border digital payments through our HelloMoney e-wallet, among others,” said AUB President Manuel A. Gomez.

AUB’s revenue growth mainly came from its loan portfolio which grew 26% to P245.4 billion from P194.5 billion a year ago — translating to one of the highest CAGR of 16%. Despite the loan growth, its asset quality further improved, with its nonperforming loan (NPL) ratio at a record low of 0.3% and loan loss provision reduced by 74%. The bank remains sufficiently covered, with an NPL coverage ratio at 113.7%, higher than previous year’s 107.9.

Net interest margin widened 11% to P16.8 billion due to an increase in interest income from the bank’s loan portfolio and investment activities. Interest expense on deposits dipped 3% despite an increase in deposit volume, resulting to the widening of net interest margin ratio to 5.0% from the previous year’s 4.8%. The bank’s low-cost deposit (current account/savings account or CASA) remains its primary source of funding, with a 71% share of total deposits.

Non-interest income grew 48% to P4.1 billion from improved foreign exchange gains, recovery income, and service charges and other fees from other operating activities such as credit cards, AUB PayMate, HelloMoney, remittance business, trust and other branch-related transactions.

Operating expenses rose by 6% to P6.8 billion mainly due to higher compensation, capital expenditures, and business growth-related expenses. The bank continues to exhibit efficient resource management in its business generation as evidenced by its 32.8% cost-to-income ratio, even lower than the previous year’s 36.2%.

Total assets grew 9% to P386 billion while total equity increased 19% to P58.4 billion, mainly from retained earnings. The bank is adequately capitalized with capital ratios well above regulatory requirements. It has an indicative Common Equity Tier 1 Ratio of 17.0% and a capital adequacy ratio of 17.8% — higher than previous year’s 16.9% and 17.5%, respectively.

“We hope to sustain our growth momentum as we start reaping the full benefits of the government’s National ID system, which 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,” Mr. Gomez added.

Recently, AUB became the first privately owned universal bank to enter into a colocation partnership agreement with the Philippine Statistics Authority (PSA), after being the earliest bank to integrate the PSA’s eVerify into its HelloMoney e-wallet last year. The bank has already successfully gained around 94,000 new HelloMoney users as of February 3, 2025, and expects its six million HelloMoney customer accounts to further grow as it brings the benefits of the National ID closer to more Filipinos.