Asia United Bank Corporation (AUB) has secured shareholder authorization to raise its capital stock to ₱72.5 billion from ₱14.7 billion to fuel its aggressive push into digital payments and credit growth.
The mid-sized lender announced that stockholders approved the modification to its articles of incorporation during a special meeting on August 28, though the capital hike remains subject to regulatory clearance.
To fulfill the mandatory 25 percent subscription and paid-up capital requirement for the increase, shareholders also approved a 100 percent stock dividend, with record and payout dates to be determined following regulatory approval.
The capital build-up aims to grant the institution greater financial flexibility to expand its commercial and retail lending operations while enhancing its fintech footprint, specifically across its e-wallet networks and cross-border payment operations.
“The approval of our capital expansion marks a pivotal moment for AUB,” said AUB Chairman Abraham T. Co. “Supported by our strong financial results, low cost of funds, and robust asset quality, we are laying the groundwork for sustained, long-term profitability.”
Chief Executive Officer Manuel Gomez emphasized that the aggressive technological rollout directly responds to changing industry dynamics.
“As financial landscapes rapidly evolve, we are doubling down on expanding our digital ecosystem by embedding cutting-edge technology into every facet of our operations,” Gomez stated, noting the move aims to unlock new revenue channels and maintain technology-driven earnings growth.
The strategic shift follows strong H1 2026 performance, where AUB delivered a ₱6.19 billion net profit. Operating income grew 10 percent year-on-year to ₱12.32 billion, buoyed by a 14.9 percent surge in net interest income to ₱10.11 billion and a 10 percent expansion in total loans and receivables to ₱281 billion.