REVIEW OF OPERATIONS By all measure, 2009 was a milestone year for the Branch Banking Group. Asia United Bank fortified its industry ranking by expanding its footprint nationwide and generating more deposit accounts. As of end-2009, AUB ranked 19th among the country’s 38 banks in terms of total assets and total deposits. Its total assets of P49.2 billion in 2009 represented an 18% increase from 2008 levels while total deposits grew 13% to P38.3 billion mostly driven by branch expansion. AUB’s branch network grew at a rate of 16% per annum.
RBA acquisition AUB’s three-year corporate strategy is anchored on a commitment to deliver long-term sustainability through both organic and inorganic growth. Consistent with its inorganic growth strategy, AUB acquired the Rural Bank of Angeles (RBA) in Angeles, Pampanga in July 2009. This marked a milestone in AUB’s 12-year history as a commercial bank. Under the acquisition, AUB will infuse P350 million into RBA over a period of there years. In addition, the sale of AUB’s common treasury
RBA is one of the pioneers in rural banking, having been in operation since 1953. It offers traditional banking services, including deposit account and services, commercial loans, agricultural loans and microfinancing. As of 2009, RBA had total assets of P169 million, which represents less than 0.3% of AUB’s total assets. The rural bank has four branches and two satellite offices, which is expected to not only boost AUB’s presence outside Metro Manila, but will also expand the Bank’s reach to clients in the rural areas and open the doors to microfinancing. New products While AUB takes advantage of fresh opportunities to widen its presence nationwide, it also aims to maximize its impact by offering innovative products, services and solutions to clients. In 2009, the Bank broke new ground by pioneering the Virtual Teller Kiosk (VTK), a homegrown system for queuing paperless transactions that AUB developed to make over-the-counter transactions faster and more convenient for clients.
ASIA UNITED BANK 2009 ANNUAL REPORT
Branching out In step with the Bank’s thrust to establish a presence in key cities nationwide, the Branch Banking Group (BBG) opened five new branches in 2009. These were in the following areas: Antipolo, Rizal (opened February 20); Tarlac (February 26); Sta. Maria, Bulacan (March 25); Meycauayan, Bulacan (March 25); and Navotas (October 28). AUB ended the year with a total of 50 branches (four more were opened as of April 2010).
shares to Kou Yu Philippines Holdings Corporation was completed in August 2009, resulting in additional capital of P1.2 billion.
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Current and savings accounts (CASA) deposits surged to an all-time high in 2009, with nearly ten million accounts or 19% higher than the year-todate target. The deposit level peaked in December, with a daily average of more than 11 million accounts. Time deposit (TD) accounts, however, still comprised the bulk of our total deposits at 65% and grew 17% to P39.5 billion during the period. CASA deposits, which made up a third of the portfolio, stood at P20.9 billion.