UCPB clears P336 million in first semester

MANILA, Philippines - United Coconut Planters Bank (UCPB) reversed its financial performance in the first semester as it posted a net income of P336 million this year, from a net loss of P1 billion in the same period last year.

In a statement, UCPB said revenues rose to P3.8 billion from January to June this year, almost double the P2.1 billion in the same period last year. Earnings from the bank’s three subsidiaries – UCPB Savings Bank, UCPB Leasing and Finance Corp. and UCPB Securities – doubled to P132 million from P66 million a year ago. 

Total assets rose to P148.6 billion from P98.18 billion a year ago.

Interest income in the first six months of the year totaled P3.1 billion, nearly twice the P1.8 billion in the same period last year. Non-interest income likewise showed healthy growth during the period, rising to P718 million or nearly thrice the P250 million a year ago, on higher earnings from its treasury and trust operations.

UCPB executive vice president and chief finance officer Cesar Rubio attributed the remarkable gains to a boost in deposits and loans.

Total deposits rose 53 percent to P120.6 billion from P78.7 billion last year. Government deposits accounted for P30 billion of the increase while regular customer deposits accounted for the remaining P12 billion.

UCPB channeled the bulk of the increment in private deposits to loans, which grew by nearly 30 percent to P32.2 billion from P24.6 billion. Commercial loans grew 31 percent while consumer loans by 41 percent.

The P30-billion government deposits were invested in government securities, resulting in the bank’s trading and investment securities expanding to P50 billion from P16.4 billion.

As part of its capital-raising program, UCPB signed last year an agreement with the Philippine Deposit Insurance Corp. (PDIC) to convert its P12-billion loan into UCPB capital notes, and with the Department of Finance to put in P30 billion of National Government deposits with the bank.