ASIA United Bank (AUB) saw its first half net income dip by 3 percent to P852.76 million from P879.54 million a year earlier on higher expenses.
“[The decrease] was primarily due to AUB’s investment in opening 29 more branches [as of]end-June and higher loan provisioning, which nudged up the bank’s total operating expenses by 27.6 percent to P2.1 billion [from P1.65 billion],” the company said in a statement.
As of end-June, AUB’s consolidated network reached 224 branches, 15 of which were covered by the subsidiaries Cavite United Rural Bank and Pampanga-based Rural Bank of Angeles.
Net interest income increased by 17.3 percent to P2.2 billion from P1.9 billion, while other operating income or non-interest income climbed by 6 percent to P841.59 million from P794 million.
The bank’s total deposit base improved by 21.4 percent to P100.7 billion – more than half of which were demand and savings accounts – while loans grew by 16.6 percent to P131.4 billion.
“This is in line with the bank’s goal of having a stronger presence in the consumer loan segment through its branches and online delivery channels,” said President Abraham T. Co.
AUB is also expanding its products that include the Preferred Online Banking’s Virtual Teller Kiosk (VTK) to enable automatic queues of transactions in any bank branch in the Philippines.
The VTK eliminated the need for physical queuing by letting clients engage online using the latest iPad version.
“We are confident that our investments in our people, products and processes will transform AUB into becoming a formidable player in the Philippine banking arena,” Chief Transformation Officer Jacob Ng said.
The bank plans to open 12 branches this year – eight branches of parent AUB and four of thrift bank subsidiary Rural Bank of Angeles.
AUB is set to raise about P5 billion from the issuance of Tier 2 notes by the fourth quarter of the year to fund its expansion.