Asia United Bank (AUB) announced a consolidated net income of P6.1 billion for the first half of the year, reflecting a 17% increase compared to P5.2 billion in the same period last year. This marks the bank's highest half-year earnings to date, nearly reaching its full-year net income of P6.3 billion in 2022. The performance corresponds to a return on assets of 3.3% and a return on equity of 21.1%.

AUB attributed its strong results to double-digit growth in total revenues and enhanced asset quality. Total revenues climbed 13% year-on-year to P11.2 billion from P9.9 billion, while earning assets grew 21% to P382.6 billion from P316.5 billion.

Net interest income rose by 7% to P8.8 billion, complemented by a substantial 40% increase in non-interest income, which reached P2.4 billion. The rise in non-interest income was primarily driven by increased trading and foreign exchange gains as well as higher service fees from digital and branch operations.

Operating expenses grew by 8% to P3.6 billion, influenced by higher compensation, capital investments, and business expansion costs. Despite this, the bank maintained an efficient cost-to-income ratio of 32.2%.

Credit quality improved marginally, with the non-performing loan (NPL) ratio decreasing to 0.41% from 0.43%, even as loan loss provisions surged 134%. The NPL coverage ratio was reported at 115.8%.

AUB’s total loan portfolio expanded significantly by 36% to P255.6 billion from P187.9 billion, and deposits increased 16% to P325.8 billion. Notably, low-cost current and savings accounts constituted 79% of total deposits, up from 75% the previous year.

The bank’s total assets rose 16% to P404.5 billion from P349.0 billion, while total equity jumped 26% to P64.9 billion from P51.4 billion. Capital adequacy remained robust with a common equity tier 1 ratio of 18.13% and a capital adequacy ratio of 18.85%, both improvements over last year’s figures.

Despite external challenges such as tariffs, trade uncertainties, and geopolitical tensions impacting economic growth forecasts, AUB remains confident in meeting its performance goals for 2023. "We will remain relentless in our efforts to reach out to the unbanked and underserved, and in helping every Filipino achieve economic mobility," said AUB President Manuel Gomez.

Following the earnings report, AUB shares increased by P1.10, or 1.99%, closing at P56.50 per share.