Asia United Bank profit drops 30% to $12.48mn

The lender’s non-interest income income from trading and trust and fee-based profits, income from securities trading and earnings from foreign exchange trading suffered fall.

Asia United Bank’s (AUB) net income plunged by almost a third in the seven months to July after income from trading and fee-based services fell.

Its net income fell by around 30% to P530.93 million ($12.48 million) in the seven-month period from P754.99 million ($17.75 million) last year.

The bank’s net interest income amounted to P1.48 billion ($34.8 million), almost unchanged from P1.47 billion ($34.56 million).

Its non-interest income, however, dropped by 4.13% to P641.12 million ($15.07 million), with income from trading and trust and fee-based profits falling during the period.

Income from securities trading fell by 4.13% to P357.809 million ($8.41 million) while earnings from foreign exchange trading plummeted by 94% to P2.08 million ($48,907).

Fee-based income dropped by 13.72% to P97.29 million ($2.29 million) while income from its trust business declined by around 35% to P19.48 million ($458,030).

The bank’s return on equity -- the net income earned as percent of stockholders’ investment and a key measure of performance -- was at 10.3% while its return on assets -- or the net income earned from total assets -- was at 1.8%.

View the full story in Business World.