ASIA United Bank’s (AUB) consolidated net income fell in the first half of the year, resulting largely from lower gains from trading and securities.
The bank reported that its consolidated net income, along with its four subsidiaries, hit P1.9 billion in the first half of the year, 15 percent lower than the year-ago’s P2.3 billion. This translates to a return on equity of 11 percent and return on assets of 1.2 percent.
“We expect 2021 to be a better year than 2020 due to the vaccine rollouts by the government and the private sector that will help improve consumer confidence and lead to increased economic activity. However, we remain cautious and vigilant about the Covid-19 variants and the economic impact of the ongoing pandemic. We are not letting our guard down,” said AUB President Manuel A. Gomez.
The bank set aside P896 million in provision for loan losses in the first half of 2021. This was 41 percent lower than the P1.5-billion buffer it allocated in the same period last year to cover the credit risk brought about by the pandemic.
The bank, meanwhile, was able to keep its net interest income on the same level as a year ago at P5.4 billion.
The bank also reported an expansion of assets by 16 percent to P336 billion compared to P 289 billion a year ago.
AUB, meanwhile, posted a 22 percent increase in total deposits to P282 billion from the previous year’s level, fueled mainly by low-cost deposits.