AUB shareholders approve nearly fivefold capital hike for expansion

Insider Spotlight

• AUB shareholders approved a 393-percent increase in authorized capital stock to P72.5 billion from P14.7 billion.
• The capital expansion is designed to give the bank greater flexibility to fund lending and digital growth.
• The amendment to AUB’s Articles of Incorporation remains subject to regulatory approvals.

Asia United Bank is moving to sharply expand its capital base after shareholders approved a 393 percent increase in authorized capital stock, giving the lender more room to pursue long-term growth.

At a special stockholders’ meeting on Aug. 28, AUB shareholders approved an amendment to the bank’s Articles of Incorporation that will raise authorized capital stock to P72.5 billion from P14.7 billion, subject to regulatory approvals.

Why it matters

The nearly fivefold authorized capital base gives AUB greater flexibility to support organic expansion, grow its commercial and consumer lending businesses and invest further in digital banking, the bank said in a statement on Monday, Aug. 31, 2026.

Abraham Co

The bank chair said the capital hike marks a "pivotal moment", supported by its strong financial results, low funding costs, and robust asset quality.

The bank said the additional headroom will also support expansion of its digital footprint, including its HelloMoney e-wallet and AUB PayMate cross-border payment system.

Shareholders separately approved a 100-percent stock dividend. The record and payment dates will be determined and announced after AUB secures all required regulatory approvals.

Driving the move

The capital expansion follows sustained financial growth at AUB. The bank booked P6.19 billion in net income during the first half of 2026, while total operating income rose 10.1 percent year on year to P12.32 billion.

Net interest income climbed 14.9 percent to P10.11 billion, while loans and receivables increased 10 percent to P281 billion.

Manuel Gomez

AUB's president said it is doubling down on expanding its digital ecosystem as the financial landscape evolves with an eye on continued growth.

What they’re saying

AUB chair Abraham Co said "The approval of our capital expansion marks a pivotal moment for AUB. Supported by our strong financial results, low cost of funds, and robust asset quality, we are laying the groundwork for sustained, long-term profitability. We remain deeply optimistic about AUB's growth trajectory as we continue to innovate, scale our digital capabilities, and deliver greater value to our shareholders and clients."

The bigger picture

The capital increase positions AUB to pursue further balance sheet expansion while maintaining investments in technology as competition intensifies across Philippine banking.

Established in 1997 and listed on the Philippine Stock Exchange, AUB offers commercial and consumer banking services alongside digital financial solutions. The expanded authorized capital gives the bank greater capacity to support its lending and digital operations.

— Edited by Daxim L. Lucas