Asia United Bank Corp. is adding 12 branches this year as part of the strategy to organically grow its network in the next few years.
Elizabeth T. Miranda, vice president and head of Corporate Planning and Investor Relations, told The Manila Times that eight bank branches will be for parent AUB and four for thrift bank subsidiary Rural Bank of Angeles.
“We only planned for three branches in Metro Manila for the parent AUB. But so far, we have already opened five, of which two are in North Luzon. The subsidiary Rural Bank of Angeles also plans to open 4 new branches in 2015,” Miranda said.
As of March, AUB registered a network of 206 branches. The Rural Bank of Angeles is one of the bank’s subsidiaries along with Asia United Leasing and Finance Corp. and Cavite United Rural Bank.
To fund expansion, AUB is raising about P5 billion in fresh funds from a Tier 2 note offering in the fourth quarter of the year.
“The issue is to fund our growth strategy for the year… We have a conservative target for branch expansion. Moving forward, we’re also looking at organic growth. We also wanted to strengthen our capital in accordance with the Basel 3 requirements,” Miranda said.
In the first quarter of the year, AUB posted a consolidated net income of to P448.9 million, up 119 percent, boosted by interest income from loans and a strong rebound in trading gains and investments.
Its first quarter loan portfolio grew by 39 percent to P73 billion year-on-year, while its deposit base increased by 20 percent to P99 billion. The banks reported that operating income rose by 46 percent to P1.5 billion, while total assets climbed by 14 percent to P127 billion from P112 billion.
Incorporated in 1997, AUB is a mid-sized universal commercial bank that caters to consumers, large corporations and small and medium enterprises.