Asia United Bank’s (AUB) unaudited consolidated net income in the first quarter of the year rose from a year earlier and from the last three months of 2015 on intensified lending and deposits activities.
In a disclosure to Philippine Stock Exchange on Monday, AUB said its consolidated net income reached P572.9 million in January to March, up 27.6 percent from P448.9 million.
On a quarterly basis, the bank’s net income surged by 456 percent from P103 million in October to December 2015.
“Amid the financial market volatility that marked the quarter, AUB and its subsidiaries continued to intensify their lending activities and generate deposits from a wider branch network nationwide,” it said.
As a result, the AUB Group recorded a 22.7 percent surge in loans and receivables at P89.5 billion as of end-March from P72.9 billion a year earlier. The group consists of publicly listed universal bank AUB and two rural bank units.
A P1.8-billion interest income during the first quarter reflected a 25.1 percent increase from P1.4 billion year-on-year. This was made possible by higher lending activity, , comprising commercial, consumer, and small and medium enterprises, and salary loans.
Interest income from trading and investment securities rebounded by 11.1 percent to P354.9 million from P319.4 million, despite the low interest rate environment.
Net interest income increased by 20.6 percent at P1.3 billion from P1.1 billion.
AUB said it was sustained the double-digit growth in deposits to end the first quarter with P124.2 billion from P98.5 billion, up 26.1 percent.
“The Group reached out to more customers through its consolidated distribution network of 229 branches, of which 208 belong to the unibank and 21 to the rural bank,” it said.
AUB President Abraham Co said the lender remains on track with its aspiration to become one of the top ten banks in the country.
The bank is presently among the top 20 in the Philippines in terms of assets: P157.7 billion in the first quarter or 23.8 percent higher from a year earlier.
In November 2015, the bank raised P5 billion in Tier 2 unsecured subordinated notes to strengthen its capital base and capital adequacy based on the requirements of the Bangko Sentral ng Pilipinas.