UCPB earnings jump 26% in H1

Manila, Philippines - United Coconut Planters Bank (UCPB) has reported a 26-percent increase in net earnings in the first six months this year to P1.64 billion, from P1.3 billion in the same period in 2011.

UCPB president and chief executive officer Jeronimo U. Kilayko attributed the impressive double-digit growth in net income was boosted by strong trading gains as well as the dramatic expansion of retail lending.

Earnings from securities trading amounted to P1.184 billion, growth of over 30 percent.

Kilayko added that the recent listing of the P1.85-billion long-term negotiable certificates of time deposit (LTNCDs) increased their optimism for a better full year performance.

 “The amount raised from the issue will help the bank retire maturing loans and address expansion targets,” he said during the Philippine Dealing Exchange (PDEx).

UCPB has applied recently for five new branch licenses in unrestricted areas.

It’s loan portfolio grew 20 percent to P77 billion as of end June, from the P63.96 billion at end-2011.

 “Strongest growth was reflected by the consumer loans which grew by 34.5 percent, while commercial loans grew by 17 percent,” Kilayko said.

The bank’s capital adequacy ratio (CAR) stood at 10.562 percent in end June this year, slightly lower than 11.92 percent in end 2011, in and just above the minimum level of 10 percent as required by the Bangko Sentral ng Pilipinas (BSP).

Meanwhile, the listing of the P1.85-billion certificates marks the third fund-raising activity of the bank. Since 2010, UCPB issued a total of P7 billion. The bank is limited to issuing deposit-based debt papers since it is hounded by ownership issued which would warrant low rates or poor credit ratings.