UCPB net earnings go up in Q1 on growth in core businesses
By Melissa Luz T. Lopez, Senior Reporter
THE UNITED Coconut Planters Bank (UCPB) saw its net income surge by a fifth during the first quarter, supported by strong growth in its core businesses.
The state-run lender said it booked P1.14 billion in profits from January-March, 19% higher than the P958 million earned during the same period last year.
“The double-digit earnings growth reflects the strong performance of the Bank’s lending, deposit-taking, bancassurance and fee-based operations in the first three months of the year,” UCPB President and Chief Executive Officer Higinio O. Macadaeg, Jr. said in a statement sent over the weekend.
The bank saw a 12% expansion in its loan portfolio, with outstanding credits higher at P173.35 billion from P155.02 billion the previous year on the back of robust growth in consumer lending. In particular, stronger demand for housing, auto and personal loans brought in P6.5 billion worth of new credit lines, UCPB said.
As a result, net interest income improved by four percent to hit P2.84 billion year-on-year.
The pickup in lending came alongside a nine percent increase in deposits, which reached P278.04 billion as of end-March largely driven by new low-cost current and savings accounts.
Non-interest income also jumped by a fifth to P743 million, with UCPB drawing bigger gains from higher service charges, fees and commissions, foreign exchange trading and bancassurance revenues.The bank signed a 10-year exclusive partnership to cross-sell United Coconut Planters Life Assurance Corp. (COCOLIFE) and UCPB General Insurance Co., Inc. in February.
Mr. Macadaeg said the bank is “ahead” of their quarterly target and stands on track to surpass 2017 earnings, which totalled P4.08 billion.
UCPB — the 11th biggest bank in asset terms — currently runs 188 branches nationwide, with no plans to open new outlets as officials await plans for the bank’s privatization.
The government is free to proceed with selling its majority stake in UCPB after the Supreme Court lifted a halt order on the disposition of coco levy assets. This involves the government’s 73.9% stake in the bank worth at least P1.1 billion.
Finance Secretary Carlos G. Dominguez III said they are sorting out legal issues before proceeding with the auction, but noted that the state is not keen on extending the financial support provided to the bank for its rehabilitation, which started in 2008 and expires this year.
