United Coconut Planters Bank (UCPB) saw its net income flat in the first half of the year as its operating income growth was tempered by higher loan loss provisions.
In a statement sent on Friday, Aug. 17, the state-run lender posted a net profit of P2 billion in the January-June period, flat from the level a year ago.
UCPB said it maintained its net income flat “amid the industry’s highly challenging operating environment brought about by the rise in the cost of funds that tightened margins and limited trading opportunities.”
Despite this, UCPB’s total revenues grew 8% to P8.67 billion from the P8.01 billion in a comparable year-ago period.
Interest income in the six months ended June stood at P7.45 billion, up 9% from last year’s P6.83 billion, supported by higher loan volume.
The bank saw a 10% expansion in its loan portfolio, with outstanding credits higher at P174.09 billion from P158.9 billion the previous year on the back of robust growth in consumer lending, primarily from the real estate segment.
For the second half, Higinio O. Macadaeg, UCPB president and chief executive officer, said the bank sees its margins improving as it align loan rates with the increased deposit rates which should boost revenues 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. — Karl Angelo N. Vidal