AUB sustains profitability with double-digit ROE as of Q3 2025

Higher revenues and improved operational efficiency enabled Asia United Bank (AUB) and its subsidiaries to sustain their profitability in the first three quarters of the year. The group posted a net income of P9.4 billion as of September 2025, a 9% increase from P8.6 billion a year ago. This translated to a 3.2% return on assets (ROA) and 20.4% return on equity (ROE).  

Total operating income grew by 10% as pf September from year-ago to P17.2 billion from P15.6 billion. Earning assets rising 22% to P390.6 billion from P319.2 billion, resulting in an 8% increase in net interest margin to P13.5 billion and a net interest margin ratio of 5.0% during the period.

Thanks to stronger trading and foreign exchange gains, along with higher fee-based revenues from credit cards, AUB PayMate, HelloMoney and remittance transactions, trust operations, and other branch-related services, the bank’s non-interest income increased by 18% to P3.7 billion from year-ago.

While operating expenses rose by 10% to P5.5 billion, driven by higher compensation, capital expenditures, and growth-related costs, AUB was able to keep its low cost-to-income ratio at 32.2%, demonstrating sustained operational efficiency.

AUB set aside loan loss provisions 141% higher than the previous year to support its expanding loan portfolio. Despite the increase in loan volumes, asset quality further improved, as shown in the bank’s improved non-performing loan (NPL) ratio of 0.36% from 0.53% a year ago. It also remains sufficiently covered, with an NPL coverage ratio at 117.14%.

“Sustaining our profitability is no mean feat, considering the heightened risks in our operating environment, both domestically and globally. But we managed to post double-digit growth rates in our core businesses,” said AUB President Manuel A. Gomez. AUB’s total loan portfolio grew 29% year-on-year to P256.9 billion from P198.9 billion while total deposits rose 19% YOY to P336.2 billion to support business volume growth. Funding cost remains low as low-cost deposits (current account/savings account or CASA) comprised 78% of its total deposits, higher than the previous year’s 76%. 

Total assets grew 19% YOY to P417.1 billion from P352.0 billion. Total equity increased 16% to P65.7 billion from P56.6 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 18.75% and a capital adequacy ratio of 19.50%.

“We remain on the lookout for growth opportunities in the horizon, particularly in digital partnerships. It is through this that we can 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.”  

Recently, AUB embarked on several partnerships so HelloMoney can reach many Filipinos, including the unbanked and underserved. AUB collaborated with leading digital insurer Singlife Philippines to bring the benefits of microinsurance to millions of Filipinos through HelloMoney. Pushing digital innovation further, the bank also partnered with the Social Security System (SSS) to introduce the SSS Pay Card so the state pension funds’ over 40 million members can conveniently receive their benefits, loans proceeds, and pension via AUB’s e-wallet HelloMoney app. AUB also partnered with TerraPay Holdings Limited, a London-based global payments infrastructure company, to offer the Send Money Abroad feature in HelloMoney so users, especially overseas Filipinos, can transfer funds quickly, securely, and affordably to recipients across the globe.