Wednesday, August 02, 2006
Bank earmarks P4B for middle market, small business loans
HAVING dramatically reduced its non-performing loans, United Coconut Planters Bank (UCPB) is poised to aggressively expand lending activities in the second half of the year with particular emphasis on the middle market and small business.
UCPB executive vice president for institutional and retail banking Higinio Macadaeg said the bank is earmarking P4 billion for these types of loans.
Middle market loans range in size from over P5 million to P50 million while small business loans are those amounting to P5 million and below.
Currently, UCPB's middle market and small business loans account for less than 30 percent of its loan portfolio.
The goal is to increase the ratio to 50% of total loans by the end of 2007, Macadaeg said.
To jumpstart the growth of middle market loans, the bank will initially tap suppliers and trade partners of the bank's large corporate accounts, said UCPB senior vice president for corporate and investment banking Sebastian Santiago.
"These companies need mostly short-term, transactional credits, so we will focus primarily on cash flow lending, granting loans to fill gaps in their business cash cycle or financing their working capital and trade requirements," he said.
Santiago said UCPB has expanded the number of relationship management teams covering the middle market segment from one to four, with two teams covering the Metro Manila markets and one each to focus on the Luzon and the Visayas-Mindanao markets.
For the small business loans, UCPB will leverage on its extensive branch network to grow the volume, said UCPB first vice president for consumer banking David Mercado.
UCPB has 212 branches, including those of its subsidiary UCPB Savings Bank, giving the bank a wide market reach, he said.
"UCPB ought to enjoy a strong competitive advantage in the small business loan segment -- as well as the middle market -- since the bank can offer the credit in tandem with its cash management solutions, where it has proven expertise," Mercado said.
For Bisaya stories from Davao. Click here. (August 2, 2006 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
