The Rebisco-led Asia United Bank relies on IT platforms to boost its business share by obtaining an Aa plus loan ranking and a stable outlook from Philippine Ratings Services Corporation. In the coming years, AUB is poised to launch new goods and services to strengthen its strategic strength while improving the banking experience of its customers.
AUB will concentrate on optimizing returns from current subsidiaries in the future. If the bank seeks to build cost-efficient options in response to consumer needs, AUB will continue to rely heavily on IT. In view of this, A corporation ranked “PRS Aa” varies only to a limited degree from the top rated firms and has a good ability to fulfill its financial obligations compared to those of other Philippine companies. The plus also qualifies the ranking assigned.
A stable outlook, on the other hand, suggests that, in the next 12 months, the grade is expected to be retained or stay unchanged. The ranking of the issuer takes into account the very strong funding profile of AUB, more than adequate capitalization, and highly qualified management and well defined policy, which are seen as providing the bank with sound guidance in the face of pandemic challenges.
As of the end of 2019, AUB’s financing profile was more than adequate, with deposits accounted for 90.3% of overall liabilities. The proportion of Current and Savings Accounts (CASA), which are perceived to be less risky and more reliable,
In fact, as a consequence of the bank’s increased promotion activities to expand its deposit base, as well as the widening of the branch network to 267 branches in 2019 from 262 in 2018, CASA grew by 19.4 percent to P172.9 billion in 2019 from P144.8 in 2018. Surprsingly, here are the gross deposits rose by 8.9% to P210.2 billion, while the ratio of equity to assets stood at 12.5% in 2019 from 12.3% in 2018. From P29.2 billion, overall equity rose by 13.5 percent to P33.2 billion.
On the other hand, asset growth, which at the end of June stood at P248ss.8 billion, was due to the continuing expansion of the debt portfolio and to the inclusion of financial assets in expectation of increased trade opportunities.
As it managed to monitor its risk exposure, the capital adequacy ratio (CAR) of the bank further increased to 18 percent.