UCPB reverses last year's loss with P1.1-billion income in January-September

MANILA, Philippines - United Coconut Planters Bank (UCPB) registered a consolidated net income of P1.1 billion in the first nine months of the year, a marked turn around from a P1.4-billion net loss suffered in the same period last year, a top bank official said.

UCPB executive vice president and chief finance officer Cesar Rubio said strong revenue growth anchored its earnings performance during the nine-month period.

He said revenues nearly doubled to P6.3 billion, from P3.4 billion a year ago, as both non-interest income and interest income increased sharply.

Non-interest income skyrocketed tripled to P1.4 billion, from a mere P5 million, mainly on higher trading gains and earnings from the sale of real and other properties acquired.

Interest income, on the other hand, went up 69 percent to P4.9 billion, from P2.9 billion, on the hefty growth of loans and trading and investment security volumes. 

In fact, the bank earned P711.7 million from July to September this year, 72 percent higher than the P413.7 million booked in the previous quarter, Rubio said.

Loans increased 20 percent to P34.6 billion, from P28.7 billion a year earlier, with both commercial loans and consumer loans registering double-digit growths of 28 percent and 42 percent, respectively.

During the same period, trading and investment securities nearly tripled to P44.2 billion, from P14.9 billion.

Deposits, which grew 52 percent to P121 billion, funded the expansion of the bank’s loan and trading and investment securities portfolios.

The expansion of these earning assets boosted the bank’s total assets 52 percent to P153.5 billion, from P101.2 billion a year ago. 

The commercial bank likewise increased its capital to P13.1 billion as of end- September. 

Earlier this year, UCPB raised its capital through an accord with the Philippine Deposit Insurance Corp. (PDIC) to convert a P12-billion loan into UCPB capital notes. Department of Finance also put in P30 billion of government deposits with bank.