AUB SETS ASIDE P3B FOR POSSIBLE LOAN LOSSES
Listed Asia United Bank (AUB) has set aside provisions for possible loan losses amounting to P3.0 billion, four times higher than last year’s P693 million, as of the third quarter as uncertainty in the economy brought about by the pandemic continues.
In a disclosure, AUB said its non-performing loans (NPL) rest at a manageable level at 2.2%, with the NPL rate bearing a sufficient cover of 96.3%.
But despite the hurdles many faced during the pandemic, the bank’s net income remained flat at P3.8 billion at the end of the third quarter of 2020 compared to 2019, which was in fact the bank’s banner year.
The bank said its operating income from its core business increased by 25% year-on-year to P11.5 billion.
The bank’s net interest income increased by 17% from P6.9 billion in 2019 to P8.1 billion, translating to a net interest margin of 4.3% due to loan portfolio growth.
Loans and receivables increased by 4% from P158.6 billion to P165.4 billion in 2020 compared to the same period in 2019.
The growth, the bank said, was predominantly funded by low cost CASA deposits, bringing total deposits to P232 billion from P223 billion in the same period from last year.