This boosted return on equity to 22.4 percent and return on assets to 3.4 percent.
Net interest margin grew by 11 percent to P12.5 billion, driven by higher interest from loans and investments, raising the net interest margin ratio to 5.3 percent.
Non-interest income also increased due to gains in foreign exchange, recovery income, and service charges from operations like credit cards and remittances.
Management’s view
“We expect our performance to remain robust, especially as we start reaping the full benefits of the government’s National ID system, with AUB being the first Philippine bank to integrate the Philippine Statistics Authority's eVerify,” AUB president Manuel A. Gomez said in a statement on Thursday.
“This will hasten our account opening process and Know Your Customer (KYC) compliance, reduce paperwork, improve loan application and approval processes, and enhance security for financial transactions,” he added.
Costs in check
Operating expenses rose by 6 percent to P5 billion, mainly due to higher staff costs and capital expenditures. Credit and impairment losses plunged 93 percent to P73 million as the bank’s nonperforming loan (NPL) ratio improved to 0.53 percent, with an NPL coverage ratio of 120.7 percent.
AUB’s total assets reached P352 billion, while its loan portfolio grew 6 percent to P198.9 billion, funded by P282 billion in deposits.
Total equity increased 25 percent to P56.6 billion, with strong capital ratios above regulatory requirements.
