Asia United Bank (AUB) is confident of posting a stronger financial performance this year amid the geopolitical and economic headwinds buffeting the global markets.
“We look to 2025 as a stronger year for the country, for the banking industry, and for AUB,” AUB President Manuel A. Gomez said during the bank’s annual stockholders meeting.
He said behind this positive outlook are the following factors: sustained robust economic momentum in the country projected at 5.5 percent to 6 percent in GDP over the next two years, rising household income that will drive loan demand in the banking sector, and stable inflation to support domestic consumption and help maintain loan quality.
“The continued progress in financial and economic digitization will also further strengthen the banking sector and should help Philippine banks cushion potential shocks arising from US tariffs and other geopolitical issues,” he said.
These factors should provide a favorable landscape for AUB which has yet again “achieved record-breaking financial performance and delivered glowing KPI results” in 2024,he said.
The bank posted a consolidated net income of P11.35 billion, 37 percent higher than the previous year and “a historic high that was mainly driven by double-digit loan growth.”
“At AUB, we believe milestones are not meant to be reached, but to be surpassed. In 2024, we have done just that…We have marked yet another important milestone in the AUB story,” he added.
In “Digital Partner,” AUB’s 2024 Annual Report Magazine, the bank attributed its stellar performance to the following main growth drivers:
Its Corporate Banking business had a record-breaking year posting a 28 percent increase in net income—the highest in the banking industry—even as it was able to maintain a nonperforming loan (NPL) ratio of 0.3 percent, the lowest in the industry.
It established several fintech and remittance partnerships that enabled AUB to selectively lend to more qualified borrowers.
Its Consumer Lending business achieved a double-digit growth in booking volume as AUB continues to make its consumer loan products widely accessible to its customers through cross-selling in its branches and making them digitally available in its AUB Mobile App and website.
With a 226-strong branch network, AUB generated low-cost deposits that remained its primary source of funding, comprising 71 percent of total deposits.
By seizing opportunities from the heightened volatility and deploying excess liquidity timely before the Bangko Sentral ng Pilipinas (BSP) reduced its overnight rates, its Treasury and Trust and Investments businessesreaped significant gains.
Gomez said the bank has also “made significant strides in enhancing (its) broader digital banking ecosystem.”
The AUB Mobile App now offers clients a more intuitive interface and expanded features, including enabling users to conveniently invest in UITFs, open additional savings accounts, and apply for salary, housing, and motor vehicle loans all from the convenience of their mobile devices.
