AUB posts record P12.7 billion profit in 2025

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February 17, 2026 | 12:00am

MANILA, Philippines — Stronger commercial lending and disciplined cost management lifted Asia United Bank (AUB)’s earnings to a record level last year, even as the banking industry faced rising competition and technology-driven risks.

In a disclosure to the local bourse, AUB reported a 12 percent increase in unaudited consolidated net income to P12.7 billion in 2025 from P11.4 billion a year earlier, driven mainly by the expansion of its combined commercial loan portfolio.

“Even as we continue to post record growth, we remain cautiously optimistic as the entire banking industry faces more intense competition from fintechs, artificial intelligence adoption and more complex cyber threats,” AUB president Manuel Gomez said.

He added that “there are still mounting cost pressures and continuing geopolitical instability,” but noted that growth opportunities remain, particularly in digital partnerships.

AUB said total operating income rose by nine percent to P23.2 billion, supported by a 13 percent increase in its total loan book to P276 billion.

Lending activity accelerated as business confidence returned to pre-pandemic levels, pushing net interest income up by 10 percent to P18.4 billion.

Profitability ratios remained strong, with return on equity sustained at 20 percent and return on assets at 3.1 percent, reflecting what the bank described as efficient capital deployment alongside a clean balance sheet.

Deposit growth helped cushion funding costs during the year. Low-cost current and savings account deposits surged by 25 percent to P279 billion, accounting for 71 percent of total deposits of P349 billion. Overall deposits increased by 12 percent year on year, allowing AUB to keep its net interest margin steady at 4.8 percent.

Non-interest income also contributed to earnings growth. Other income climbed by eight percent to P4.84 billion, led by higher fee-based revenues from services such as AUB PayMate, HelloMoney, remittance, trust and credit card businesses.

The bank posted a nonperforming loan ratio of 0.38 percent and an NPL coverage ratio of 115 percent, which it attributed to disciplined underwriting and improved borrower behavior.

Credit costs remained well contained, leaving the bank positioned to absorb potential volatility as provisioning requirements normalize.

AUB’s balance sheet expanded alongside earnings with total assets reached P435 billion, up by 13 percent from a year ago, while capital buffers stayed well above regulatory requirements.

The bank reported a common equity tier 1 ratio of 18.39 percent and a total capital adequacy ratio of 19.11 percent.