UCPB deposits up in Q1

The United Coconut Planters Bank (UCPB) has reported an 11-percent increase in deposits to P83.6 billion in the first three months from P75.2 billion a year ago.

UCPB first vice president for business development Edmond Bernardo said current account and savings account (CASA) deposits rose by 16 percent from P30.1 billion from January to March 2007 to P34.8 billion this year.

CASA deposits accounted for 42 percent of its total deposits, up from 40 percent a year ago. Time deposits expanded to P48.8 billion from P45.2 billion.

Last year, UCPB reorganized its 545 branches to focus solely on deposit generation and the cross-selling of other bank products including transactional and cash management products. The processing of transactions and other administrative works were spun off to a separate branch operations unit.

"The creation of a dedicated marketing unit enhanced cross-selling activities resulting the increase in the number of clients enrolled in the bank’s cash management services and electronic banking facilities by 12 percent to 76,145. Users of these services and facilities are required to maintain a certain level of CASA deposits.

The separation of the operations functions from sales and marketing also improved the delivery of customer service, enhancing customer retention.

UCPB is targeting its total deposits to reach P88.4 billion by the end of the year.

"The shift in the focus of UCPB’s deposit generation effort towards the less expensive CASA deposits is a deliberate strategy to lower the bank’s fund cost and enhance its competitive position in the retail loans market," Bernardo added.