UNITED Coconut Planters Bank (UCPB) said net profit was flat in the first half with operating income growth tempered by higher provisioning for loan losses.
In a statement Friday, the state-run lender posted a net profit of P2 billion in the six months to June, as the bank took a “conservative” approach to provisioning while income from subsidiaries fell.
Revenue rose 8% year-on-year to P8.67 billion, after a 9% rise in interest income to P7.45 billion, supported by higher loan volume.
The loan book grew 10% year-on-year to P174.09 billion on the back of robust growth in consumer lending, primarily from the real estate segment.
Income from fixed-income securities fell, while non-interest income expanded 3% year-on-year to P1.22 billion, driven by the bancassurance business as well as higher foreign exchange gains.
Higinio O. Macadaeg, UCPB president and chief executive officer, said the bank expects margins to improve this semester as it aligns loan rates with rising deposit rates, which should boost revenue from the bank’s lending business.
“Consumer banking and bancassurance will be our main revenue drivers for the rest of the year,” Mr. Macadaeg was quoted as saying in the statement.
Earlier this year, the bank signed a 10-year exclusive partnership to cross-sell products from United Coconut Planters Life Assurance Corp. (COCOLIFE) and UCPB General Insurance Co., Inc.
UCPB was the 11th-biggest commercial bank in asset terms at the end of March. — Karl Angelo N. Vidal