Net income edged up just 0.3 percent to a record P9.4 billion, even as loans expanded by double digits and the bank's core interest business delivered stronger earnings.
“With a record P9.4-billion net income and recent stockholder approval to quintuple our capital base to P72.5 billion, AUB enters the coming year from a position of profound strength,” president Manuel Gomez said.
Core banking holds up
Net interest income jumped 14.5 percent to P15.5 billion as loans grew 13.8 percent to P292.3 billion and interest expenses fell 10.2 percent.
The bank also widened its net interest margin to 5.1 percent, while fee income from credit cards, digital payments and other customer transactions rose 14.5 percent to P1.5 billion.
But trading and securities results swung to a P11.8-million loss from a P1.37-billion gain a year earlier, blunting the impact of stronger core operations.
Costs remain contained
Operating expenses increased 7.2 percent to P6.1 billion, slower than the growth in lending and interest income, keeping AUB's cost-to-income ratio at 33.1 percent.
The bank's nonperforming loan ratio stood at just 0.56 percent, while deposits reached P344.7 billion, with low-cost current and savings accounts making up 76 percent.
Building a bigger buffer
AUB ended September with P73.3 billion in equity and a capital adequacy ratio of 19.12 percent, giving it room to support further lending growth.
He nevertheless warned of emerging market headwinds and inflationary pressures, underscoring the risks facing banks even as lending demand holds up.
—Edited by Miguel R. Camus
