UCPB nets P1.3 B in first half of 2011

MANILA, Philippines—United Coconut Planters Bank boosted its first semester net profit by 18 percent year-on-year to P1.3 billion as it benefited from higher earnings from loans and investments as well as bigger income contribution from its subsidiaries.

In a press statement on Thursday, UCPB executive vice president and chief finance officer Cesar Rubio said the bank had expanded its loan portfolio and trading and investment securities holdings substantially during the period as deposits continued to grow steadily.

As of end-June, UCPB’s total loans reached P64 billion, up by 15 percent from a year ago, while trading and investment securities totaled P49.4 billion, up by 9 percent compared to the same level last year.

The increase in earning assets was supported by a 10 percent rise in total deposits to P151 billion during the period, with most of the increment coming in the form of low-cost current accounts and savings accounts.

Rubio said the combination of higher loan and investment volumes and lower cost of funds lifted the bank’s net interest income by 15 percent to P2.9 billion from the same period last year.

UCPB’s subsidiaries also posted higher income in the first six months of the year compared to the same period last year. Their combined profits totaled P191 million, 23 percent higher year-on-year. Its main units are UCPB Savings Bank, UCPB Leasing and Finance Corp. and UCPB Securities.

Rubio said that with a higher volume of earning assets, the bank would likely sustain the growth momentum into the second semester.

Total assets of UCPB increased to P184.9 billion at end-June, up by nine percent from a year ago.  Total capital of the bank also went up by 18 percent to P15.6 billion year-on-year.

Rubio said UCPB was planning to open five more branches before the year ends to further boost deposit generation and lending operation, thus bring the branch network to 188.

The bank is also issuing this August P3 billion worth of long-term negotiable certificates of deposit (LTNCD).  The Bangko Sentral ng Pilipinas has approved the planned offering. Proceeds will be deployed to increase long-term assets, mainly loans to the consumer sector, Rubio said.

UCPB has also been growing its loans to the consumer sector where margins are higher.  In the first six months of the year, the bank booked P3.7 billion of consumer loans, 16 percent more than the P3.2 billion in the same period last year.