Asia United Bank Corp. (PSE: AUB) posted a net income of P2.3 billion for the first half of 2020 (-10% year-on-year) on the back of the 18% year-on-year increase in operating earnings. This was partly offset by the P1.5 billion provision for loan loss reserves on account of the COVID-19 pandemic. The Group’s income translated to a return on assets of 1.7% and return on equity of 13.9%.
Net interest income increased by 21% from P4.5 billion in 2019 to P5.4 billion same period this year, translating to a net interest margin of 4.6%. Trading and securities gain also increased to P1.1 billion, translating to a 34% growth where the Group took advantage of the downward trend of fixed income market yields.
Loans and receivables increased by 8% to P171.7 billion versus P159.6 billion of the same period in 2019, owing its growth to commercial loans and other loan segments for housing, auto, and salary loans. The bank’s nonperforming loan (NPL) ratio was at 1.2% at end-June, up from 1.0% a year earlier.
Total assets hit P289 billion as of June, up from the P251.7 billion recorded in the same period last year. The bank increased its expenses by 6% with cost to income ratio at 40.1% lower than last year’s 44.8%.
“AUB remains strong and resilient. We are prepared to ride out this current scenario by keeping a healthy balance sheet and staying liquid. We will continue to adapt to the demands of the changing environment,” AUB President Manuel A. Gomez said.