Asia United Bank achieved a landmark year in 2025, reporting a record-breaking net income surge of 12% compared to the previous year. This impressive climb propelled earnings to P12.7 billion, a significant increase from the P11.4 billion recorded in 2024.
The bank’s success was largely fueled by a substantial expansion in its commercial lending activities. A robust loan portfolio, coupled with streamlined operations, allowed AUB and its subsidiaries to achieve double-digit profitability growth.
This strong financial performance translated into a compelling return on equity of 20% and a return on assets of 3.1%. These figures demonstrate the bank’s efficiency in generating profits from both shareholder investments and its overall asset base.
Net interest income experienced a healthy 10% increase, reaching P18.4 billion, driven by a 13% expansion of the loan portfolio to P276 billion. This growth mirrored a resurgence in business confidence as economic activity normalized following the pandemic.
Despite the increase in lending, the bank maintained remarkably controlled credit costs. A low nonperforming loan (NPL) ratio of just 0.38%, alongside a robust NPL coverage ratio of 115%, underscored disciplined lending practices and a high-quality asset base.
The bank’s net interest margin remained steady at 4.8%, a testament to effective management of funding costs. This stability was further supported by a significant increase in low-cost deposits.
Total operating income rose by 9% year-on-year to P23.3 billion, with other income sources contributing an 8% increase to P4.8 billion. Growth in fee-based income from digital solutions like AUB PayMate and HelloMoney, alongside remittance and credit card services, played a key role.
Total deposits grew by 12% to P349 billion, with particularly strong growth in current and savings account (CASA) deposits, which surged 25% to P279 billion. This influx of low-cost deposits helped offset rising funding costs and maintain the bank’s healthy net interest margin.
AUB’s asset base expanded by 13% to P435 billion, reflecting the bank’s overall growth trajectory. Capital adequacy ratios remained strong, with a common equity Tier 1 ratio of 18.4% and a total capital adequacy ratio of 19.1%.
While celebrating these achievements, AUB President Manuel A. Gomez acknowledged the evolving challenges facing the banking industry. Increased competition from fintech companies, the integration of artificial intelligence, and escalating cyber threats require constant vigilance.
Gomez emphasized the importance of embracing digital partnerships to remain competitive. He highlighted opportunities to revolutionize cross-border digital payment solutions, particularly through the HelloMoney platform, as a key strategy for future growth.
The market responded positively to the news, with AUB shares experiencing a modest gain, closing at P43.90 each.
