UCPB earns 9% more in January-September

MANILA, Philippines - United Coconut Planters Bank (UCPB) reported a nine percent increase in net earnings in the nine months to September this year to P1.99 billion, from P1.83 billion in the same period in 2014.

“This is due to UCPB’s expanding consumer loans business, fee income generation and trading income,” said Cesar Rubio, UCPB chief finance officer and executive vice president.

Consumer loans rose 30 percent to P39 billion from year-ago levels, influenced by the positive economic environment characterized by increased consumer spending, low inflation rates and market liquidity.

Various marketing initiatives such as the bank’s participation in consumer loan fairs, incentive programs for partner brokers and agents, and business briefings for entrepreneur-clients also contributed to its consumer loan business, resulting in overall loan growth of eight percent.

Deposits increased slightly to P217 billion, with the growth in low-cost CASA offsetting the anticipated decline in FCDU deposits.

Non-interest income improved six percent due to a nine-percent increase in fee generation income to P761.98 million due to consumer loan, deposit and other product-related fees.

There was also a 15-percent growth in trading income to P695.14 million from year-ago levels.

Operating income was reinforced by the management of the bank’s expenses at less than three percent even with a 12-percent increase in manpower cost from an expansion of the consumer business work force and salary rate adjustment of entry-level positions.

Rubio said UCPB is confident positive growth will be carried over to the fourth quarter.

“We are targeting a net income of P2.7 billion by the end of the year as the bank follows through with its long-term strategic directions to achieve its business targets. We are optimistic that we will be able to sustain this with the economy’s steadfast growth which we expect to improve even further next year,” he said.

Recently, UCPB migrated to BancNet following the operational merger of BancNet and MegaLink. Thus, UCPB ATM cardholders can continue to transact in other banks’ ATMs and point-of-sale (POS) terminals in retail establishments nationwide. They can also withdraw cash, pay bills, request for statements, and reorder checkbooks through the ATMs.

UCPB operates 228 branches and 330 ATM units nationwide.