Asia United Bank posts record 1st-half net income of P6.1B

​Asia United Bank (AUB) and its subsidiaries posted a net income of P6.1 billion for the first six months of the year. This was 17% higher than P5.2 billion a year ago and its highest first half income as well as close to its full-year performance of P6.3 billion in 2022. This translated to a 3.3% ROA and 21.1% ROE.

​This was mainly boosted by a 13% year-on-year growth in its total revenues to P11.2 billion from P9.9 billion.

Earning assets rose 21% to P382.6 billion from P316.5 billion, resulting in a 7% increase in net interest margin to P8.8 billion and a net interest margin ratio of 5%.

Non-interest income grew 40% to P2.4 billion from improved trading gains, foreign exchange gains, 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.

While operating expenses rose by 8% to P3.6 billion, mainly due to higher compensation, capital expenditures, and business growth-related expenses, the group’s cost-to-income ratio remained low at 32.2% due to sustained operational efficiency.

The group set aside loan loss provisions that were 134% higher than in the previous year as its loan volume expands. Despite volume expansion, good asset quality was sustained with its nonperforming loan (NPL) ratio at 0.41% from year ago’s 0.43%. AUB remains sufficiently covered, with an NPL coverage ratio at 115.8%.

In step with the momentum of the Philippine economy, AUB’s total loan portfolio grew 36% year-on-year to P255.6 billion from P187.9 billion. Total deposits rose 16% YOY to P325.8 billion to support business volume growth. Funding cost remains low as low-cost deposits (current account/savings account or CASA) comprised 79% of its total deposits, higher than the previous year’s 75%.

Total assets grew 16% to P404.5 billion from P349.0 billion, YOY. Total equity increased 26% to P64.9 billion from P51.4 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 18.13% and a capital adequacy ratio of 18.85%, higher than the previous year’s 17.9% and 18.7%, respectively.

Last July 25, 2025, AUB declared a P2 per share cash dividend payable in 2 tranches: the first tranche will be paid on August 22, 2025 with a record date of August 15, 2025, and the second tranche on September 30, 2025 with a record date of September 22, 2025. On June 27, 2025, stockholders approved a 100% stock dividend with payment date of August 15, 2025 to stockholders as of record date July 25, 2025.

Despite the downgraded growth forecast for the Philippine economy for this year mainly due to tariffs and trade uncertainty, geopolitical tensions, and other external headwinds, AUB remains optimistic it will hit its performance targets. “Sustaining our profitability since the pandemic is no mean feat, thanks to our robust core business and digital partnerships. We will remain relentless in our efforts to reach out to the unbanked and underserved, and in helping every Filipino achieve economic mobility,” said AUB President Manuel A. Gomez.