AUB H1 earnings edge up as lending lifts core income growth

Insider Spotlight

• First-half net income inched up to P6.19 billion from P6.13 billion a year earlier, supported by loan growth and stronger core banking income
• Total operating income rose 10.1 percent as net interest income climbed 14.9 percent and fee-based businesses expanded
• Loan loss provisions surged 227 percent, reflecting a more cautious stance amid the macroeconomic environment, even as asset quality remained strong
  
  
  

Asia United Bank Corp. posted a modest increase in first-half net income as sustained lending growth and higher core banking revenues offset a sharp increase in provisions for potential credit losses, underscoring the lender's focus on balancing expansion with prudent risk management.

The bank reported net income of P6.19 billion for the first half, slightly higher than P6.13 billion in the same period last year. Return on equity stood at 18.3 percent, while return on assets reached 3 percent.

Why it matters

The results show AUB continued to expand its core lending franchise despite a more challenging operating environment, while preserving strong profitability and asset quality.

By the numbers

Total operating income increased 10.1 percent to P12.32 billion, driven by an 8.2 percent rise in interest income to P12.69 billion. Net interest income climbed a faster 14.9 percent to P10.11 billion, supported by a 10 percent increase in loans and receivables to P281 billion. Net interest margin reached 5.1 percent.

 Manuel A. Gomez

AUB president

Non-interest income also strengthened, with service charges, fees, commissions and trust income rising 16 percent to P1.2 billion, reflecting contributions from HelloMoney, credit cards, trust services, AUB PayMate and branch transactions. Operating expenses increased 11 percent to P4 billion, although the bank maintained a cost-to-income ratio of 32.6 percent.

Between the lines

AUB substantially increased loan loss provisions to P596 million, up 227 percent from a year earlier, citing a proactive response to the prevailing macroeconomic environment. Despite the higher provisioning, the bank's non-performing loan ratio remained low at 0.44 percent, with a coverage ratio of 107.2 percent.

Total assets expanded 5.6 percent to P427 billion, while deposits grew 3.8 percent to P338 billion. Current and savings account deposits totaled P257 billion, accounting for 76.12 percent of total deposits, highlighting the bank's stable, low-cost funding base. Total equity increased 8.7 percent to P70.54 billion.

What they're saying

“Our steady results in the first half of 2026 reflect a strong foundation that enables us to aggressively accelerate our future-ready digital roadmap,” AUB president Manuel A. Gomez said in a press statement.

“As financial landscapes rapidly evolve, we are doubling down on expanding our digital ecosystem—from scaling our HelloMoney e-wallet to enhancing cross-border payment integration through AUB PayMate. By embedding cutting-edge technology into every facet of our operations, we aim to deliver frictionless banking experiences, capture new growth corridors, and maintain our trajectory of sustainable, technology-led profitability,” he added. —Vanessa Hidalgo| Ed: Corrie S. Narisma