UCPB hikes net profit by 22% to P1.64B in 1st half-A A +A
Sunday, August 19, 2012
THE United Coconut Planters Bank (UCPB) posted a net income of P1.64 billion in the first six months of the year, up by 22 percent as compared to the same period last year, which was pegged at P1.34 billion.
This developed as the bank grew its loan portfolio, as well as its trading and securities earnings by double digits.
From January to June, this year, total loans went up by 20 percent to P77 billion from P63.96 billion in the same period last year. Corporate loans increased by 17 percent. Consumer loans went up at a much faster pace at 35 percent.
UCPB propelled the growth of its consumer loan segment by continuously tapping major property developers for referrals and launching UCPB's Your Easy Salary (YES) Loan Program in Cebu City where demand is high.
UCPB's YES Loan is a loan facility extended to both employed and self-employed individuals with a checking account and major credit card.
Clients can borrow up to P1 million for various purposes such as for home improvements, medical and emergency expenses, car repair and maintenance, purchase of consumer goods, tuition fees and other personal expenses.
Plans to offer the said salary loan in Davao City is also underway with the end in view of broadening the bank's client base.
Interest income generated by these activities rose by 17 percent totaling P2.57 billion compared to P2.20 billion in June 2011.
Non-interest income derived from trading and securities soared by 87 percent or P781.94 million from just P417.61 million from a year ago.
In July, UCPB listed an additional P1.85 billion Long Term Negotiable Certificates of Time Deposit (LTNCD) at the Philippine Dealing and Exchange Corp.
Demand for the LTNCD exceeded the offer size. Clients who wanted to invest had to be referred to the secondary market.
The said LTNCDs, which were raised in May, is strengthening UCPB's long-term deposit base and is funding its loan expansion program. This was the third time that the bank successfully ventured into similar deposit-raising efforts.
By the end of June 2012, total assets of UCPB in the first semester amounted to P211.80 billion up by 15 percent while total capital stood at P18.58 billion increasing by 19 percent. It also earned a consolidated capital adequacy ratio of 12 percent during the period.
Published in the Sun.Star Davao newspaper on August 20, 2012.