UCPB Savings eyes 26% income growth in 2012

MANILA, Philippines - UCPB Savings Bank is looking to grow its net income by roughly 26 percent in 2012, or from P277 million in 2011 to P350 million.

UCPB Savings president and chief executive officer Joseph C. Justiniano said the target growth will be driven by expanding its deposit base with the introduction of new products and services, i.e., automated teller machines (ATM), Internet banking and payroll services.

 “We will open new branches in Calamba, Laguna and Northern Luzon,” Justiniano said. “Likewise, the bank will continuously renovate and relocate existing branches in areas that offer better business potentials.”

UCPB Savings is the thrift bank arm of the United Coconut Planters Bank (UCPB).

Net income grew a mere three percent in 2011, or from P270 million in 2010 to P277 million last year.

“2011 was a slow year for UCPB Savings as growth was hampered and suppressed by the plan to merge with UCPB. Its planned initiatives to expand its business were shelved,” he added.

Interest income from loans increased 25 percent to P703 million in 2011 compared to P564 million the previous year.

Loan portfolio ballooned to P5.3 billion last year, or 12.4 percent more than the P4.6 billion in 2010.

Commercial loans reached P1.84 billion or 35 percent share of total portfolio, salary loans amounted to P1.74 billion (33 percent of total), auto loans at P950 million (18 percent), real estate loans at P600 million (11 percent of total) and P100 million in other loans.

Past due ratio is at 3.5 percent better than industry ratio of 7.5 percent for thrift banks.

However, non-interest income slipped to P163 million last year and P183 million in 2010, due mainly to the new clearing system implemented.

Total operating expenses increased to P333 million in 2011 versus P295 million in 2010, or P37 million higher year on year.

Deposit increased six percent to P4.4 billion in 2011 from P4.1 billion the previous year.

Risk-weighted capital adequacy ratio (CAR) is at 31.33 percent in 2011 versus 31.04 in 2010.

UCPB Savings is a product of the merger of four thrift banks in 1989 and the acquisition of UCPB Rural Bank in 2005.