MANILA, Philippines - United Coconut Planters Bank (UCPB) will seek the approval of the Securities and Exchange Commission (SEC) for a 50-year expansion in its corporate life.
In a special board meeting yesterday, the bank’s board of directors voted to extend the life of the bank by another 50 years to allow it to pursue its pioneering efforts in the banking industry and its key role in countryside development.
UCPB president and CEO Jeronimo Kilayko explained that a new lease in life will allow the bank to remain on track of its 2012 targets.
“With the extension of the bank’s corporate existence now a certainty, it can sustain its growth momentum towards becoming a bigger and stronger financial institution,” Kilayko said, adding that growth wlll be aided by creating more technology-driven products and expanding its loan portfolio, remittance business, fee income and branch network.
He added that the new 50-year corporate life reflects the bank’s earnest desire for the coconut industry’s common good long term benefits from UCPB’s commitment to continue helping develop the industry.
The bank’s extended life also assures repayment of bank’s obligations while continuing one of its primary mandates to improve the lives of Filipinos in the countryside who most need financial services and assistance.
The bank has a long history of leadership after its establishment in 1963, becoming the first private local bank to become a universal bank and obtaining its expanded commercial banking license in 1981.
Despite temporary impediments towards its further growth, UCPB plans to open five more branches during the year, bringing the bank’s total branch network to 193.
“That will allow us greater market access, primarily coconut farmers and other industry stakeholders, whose welfare was the key reason for the establishing the bank,” the bank’s chief executive added.
The bank’s net income amounted to P3.05 billion in 2011, a 25-percent growth from a year ago, boosted by gains in its loan and checking account and savings account (CASA) generation, treasury trading, real and other properties owned and acquired (ROPOA) disposal.
Loans expanded 13.4 percent to P57.5 billion with corporate loans accounting for 73 percent or P42 billion of total. Consumer loans grew at a faster rate with a 34 percent increase from P11.6 billion to P15.5 billion in the same period.
Low cost deposits reached P109.76 billion, which is P9.89 billion higher than in 2010 and provided funding for the loan portfolio. As a result, the bank improved its margins with a seven percent hike in its net interest income amounting to P5.8 billion.
By the end of 2011, total assets reached P201.87 billion, 9.84 percent higher than the P183.78 billion in 2010 while total capital increased 17.69 percent to P17.3 billion.