UCPB’s Q1 net profit at P929M

UNITED Coconut Planters Bank grew its first quarter net profit by 51 percent year-on-year to P929 million as higher interest earnings were complemented by an increase in trading gains.

The bank reported on Tuesday that its loan book had increased by 15 percent year-on-year to P132.3 billion in the first three months. This was led by its consumer loans business which had grown by 27 percent, giving the bank better interest margins and a more secured loan profile.

Consumer loans were funded by deposits which went up by 14 percent, bulk of which came from low-cost deposits which had expanded by 16 percent.

As a result, the bank posted a 16 percent year-on-year growth in its net interest income, supplemented by a 17 percent growth in non-interest income due to a 20 percent rise in trading gains.

Operating expenses expanded by a modest 4 percent even as the bank expanded its headcount to support the bank’s focus on consumer loans. The bank also disposed acquired properties, resulting in gains of P91 million.

“We are looking at bright prospects for the rest of the year based on our remarkable performance for the first quarter. We will continue to focus on our core business even as we improve our non-interest income in order to attain, if not exceed, our 2016 targets,” UCPB president Jeronimo Kilayko said in a press statement.

In 2015, UCPB chalked up a net income of P3.3 billion, 5.1 percent higher the previous year. This was attributed to the robust growth of its consumer loans business, treasury-related non-interest income and the contribution of its subsidiaries.

UCPB, which celebrated its 53rd anniversary last May 15, has 232 branches and 341 ATMs (automated teller machines) nationwide, including the UCPB Savings Bank network.