OWNERSHIP profile. Not that Asia United Bank Corp. is exaggerating its compliance with the full disclosure rule that governs listed companies by naming the stockholders of its corporate stockholders. It is only telling the public that it has nothing to hide from them and that they would want them to know who are responsible for the bank’s financial performance.
As of April 30, 2014, Asia United Bank Corp. (AUBC) listed three corporate stockholders. Republic Biscuit Corp. holds 105.560 million shares, or 32.64 percent; Kuo Yu Philippines Holdings Corp., 60 million shares or 18.54; and Lambda Holdings Corp., 213.560 million shares, or 14.84 percent.
The same filing shows PCD Nominee Corp. holds 58.446 million AUBC shares, or 18.06 percent, as record stockholder for foreigners, and 51.062 million AUBC shares, or 15.78 percent, for Filipinos.
In a footnote to the ownership filing posted on the website of the Philippine Stock Exchange, AUBC said of the PCD-held AUBC shares, only Deutsche Bank Manila and Lucky Securities Inc. hold more than 5e percent, or 5.28 percent and 13.64 percent, respectively.
Corporate stockholders. By naming the three companies that are its significant stockholders, Asia United Bank is already compliant with the rule.
In the footnotes to the stockholders’ list, AUBC said Republic Biscuit is owned by the following: Jacinto L. Ng Sr., 40 percent; Jacinto C. Ng Jr. and Jonathan C. Ng, 20 percent each; Ciudad Kuvera Investments Corp. and Jacob C. Ng. 10 percent each.
In the same footnotes, the bank said Lin Hong Dow owns 40 percent of Kuo Yu of which he directly owns 1.54 percent while his Hung An Hotel Consultant & Management Co. Ltd. holds 38.46 percent.
Lambda, the third corporate stockholder, is controlled by the Ngs and their holding company Asia United Worldwide Holdings Inc., which owns 40 percent. Individually, Jonathan and Jacinto Jr. own 20 percent and 15 percent, respectively. The others are George T. Chua, 15 percent; Jan Gold Investments Corp. 10 percent.
Executive compensation. The Ngs may be the majority stockholders of Asia United Bank but not the highest-paid executives. Not even the Jacinto Ng Sr., who is chairman of the board, is in the list since 2011. But he, along with the other directors, also receives the pays and perks they are entitled to receive as policy makers.
AUBC’s five most compensated officers are Abraham T. Co, chief executive officer; Isabelita M. Papa, Manuel A. Gomez, Antonio V. Agcaoili Jr., executive vice presidents; and Eduardo I. Conde, senior vice president.
AUBC paid the group P21.689 million—salary, P16.267 million, bonus,P5.422 million—in 2011; P20.945 million—salary, P15.709 million, bonus, P5.236 million—in 2012; and P24.233 million—salary, P18.175 million, bonus, P6.058 million—in 2013.
This year, the bank estimated their pays and perks at PP26.80 million consisting of P20.10 million in salary and P6.70 million in bonus.
In the same compensation filing the bank said it paid “all other officers and directors as a group P296.654 million in 2011; P355.034 million in 2012; and P545.839 million in 2013. This year, it will pay the group P760.080 million.
Financials. In return for paying the management team said compensation, Asia United Bank said it had accumulated a surplus of P10.144 billion as of March 31, 2014.
But it said its total operating income in the first quarter dropped 10 percent to P1.056 billion from P1.173 billion in the same period last year. Its net income, meanwhile, plunged 62.3 percent to P205.320 million from P543.926 million in the same quarter in 2013.
In 2013, AUBC did better. It reported net income of P1.475 billion, up from P1.437 billion in 2012. These profits resulted from revenues of P3.711billion and P2.707 billion in 2013 and 2012, respectively.
With its net profit declining more than 62 percent in the first quarter, AUBC still has nine months to recover and, as in 2013, increase its net income for 2014.