UCPB consumer loans up 53% in 9 months

MANILA, Philippines - United Coconut Planters Bank (UCPB) posted a 53-percent increase in consumer loans in the first nine months of 2010 to P10.4 billion, from P6.8 billion last year, as the bank realized a 65-percent boost in real estate, auto and personal loans.

UCPB first vice president for consumer banking David Mercado also noted the surge in demand for mid-range residential properties almost doubled its real estate loan bookings during the period from P1.4 billion to P2.5 billion.

“The robust growth of the mid-range property segment is being fueled by the shift in the preference of overseas Filipino workers from low-cost houses to townhouses, condominiums and walk-up apartments in the P3-million to P5-million price range,” he pointed out.

Auto loan bookings expanded 64 percent from P1.4 billion to P2.3 billion, likewise driven by the money sent by overseas Filipinos to their families in the country.

Passenger car sales rose 34 percent in the first three quarters of 2010 over the same period last year, according to the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI).

Remittances in the first semester of 2010 rose almost seven percent to $9.062 billion from $8.4 billion in the same period last year. The Bangko Sentral ng Pilipinas (BSP) is looking at an eight-to nine-percent expansion in remittances this year.

Personal loan bookings grew 32 percent to P262 million from P198 million to bring the portfolio size to P473 million.

“We’re bullish about our growth prospects in the last quarter of the year,” Mercado said.

Bank officials said the improvement in the overall business and consumer confidence and the continued rise of overseas remittances are likely to further boost personal investments and consumption.

Mercado said the continued growth of low-cost current account and savings account deposits, which fund consumer loans, greatly enhances UCPB’s competitive position. Current account and savings account deposit base ballooned by 23 percent year-on-year at the end of September 2010.

The bank’s net earnings in the first semester of 2010 more than tripled to P1.14 billion as UCPB emerged stronger with total assets increasing 11 percent to P164.80 billion from P148.64 billion.