A Five-Year strategic financial plan for Asia United Bank

By: Reexia Julienne P. Aresgado, Faith H. Enriquez, Stefanie Ann R. Lorenzo, Janela Jude L. Maagma, Stefanie Nicole C. Maranan, Lean Emeri E. Nerie, Ashley Ysabel A. Pilarte
Language: English . . c2024Description: . Financial Plan: (BSBA major in Financial Management) - Pamantasan ng Lungsod ng Maynila, 2024Content type: text Media type: unmediated Carrier type: volumeGenre/Form: academic writing -- .DDC classification: . LOC classification: HG4026 A742024
Contents:
Executive Summary: This financial plan for Asia United Bank (AUB) is designed to address its rising asset-to-equity ratio, which has consistently exceeded the industry average over the past five years. The plan aims to resolve this issue while achieving specific objectives, including improving the bank's industry ranking, increasing its current assets, and enhancing interest income generation. AUB has shown favorable financial indicators, particularly in liquidity, solvency, and asset quality. It outperformed the industry in the Liquid-to-Total-Assets Ratio and Interest Rate Coverage Ratio, with improvements in its Net Non-Performing Loan (NPL) ratio and NPL Coverage Ratio. However, challenges remain in profitability, with unfavorable returns on assets (ROA) and equity (ROE) during the pandemic years, along with a higher cost-to-income ratio. The entity also faced a deterioration in asset quality in 2020, indicated by a surge in the NPL ratio. To address these financial challenges, the recommended course of action is to increase equity by selling a portion of government securities. This approach will mitigate the asset-to-equity issue, improve liquidity, and reduce market volatility risks. It will also enhance AUB's capital structure, investor confidence, and financial stability, positioning the bank for growth and better resilience against economic downturns. This recommendation is considered the most strategic option compared to alternatives, such as increasing foreign currency exposure or reducing risky assets, which carry higher risks. By focusing on increasing equity, AUB can achieve long-term success and financial sustainability.
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Thesis/Dissertation PLM
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Filipiniana Section 		Filipiniana-Thesis HG4026 A742024 (Browse shelf) Available FT8553
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Executive Summary: This financial plan for Asia United Bank (AUB) is designed to address its rising asset-to-equity ratio, which has consistently exceeded the industry average over the past five years. The plan aims to resolve this issue while achieving specific objectives, including improving the bank's industry ranking, increasing its current assets, and enhancing interest income generation. AUB has shown favorable financial indicators, particularly in liquidity, solvency, and asset quality. It outperformed the industry in the Liquid-to-Total-Assets Ratio and Interest Rate Coverage Ratio, with improvements in its Net Non-Performing Loan (NPL) ratio and NPL Coverage Ratio. However, challenges remain in profitability, with unfavorable returns on assets (ROA) and equity (ROE) during the pandemic years, along with a higher cost-to-income ratio. The entity also faced a deterioration in asset quality in 2020, indicated by a surge in the NPL ratio. To address these financial challenges, the recommended course of action is to increase equity by selling a portion of government securities. This approach will mitigate the asset-to-equity issue, improve liquidity, and reduce market volatility risks. It will also enhance AUB's capital structure, investor confidence, and financial stability, positioning the bank for growth and better resilience against economic downturns. This recommendation is considered the most strategic option compared to alternatives, such as increasing foreign currency exposure or reducing risky assets, which carry higher risks. By focusing on increasing equity, AUB can achieve long-term success and financial sustainability.

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