UCPB expects to earn P3 billion this year

MANILA, Philippines - United Coconut Development Bank (UCPB) said it is confident of surpassing its 2010 income record of P2.45 billion this year, due to the robust expansion of its loan portfolio and the strong performance of subsidiaries.

UCPB president and chief executive officer Jeronimo U. Kilayko said that optimistic outlook is likewise supported by the strong expansion and deployment of its branch network, including its re-branding and clean books.

“We would likely end this year with profits of P3 billion, higher than last year’s P2.45 billion,” Kilayko said.

He likewise forecast that the strong performance this year could be duplicated, if not surpassed, in 2012.

UCPB is looking to register a net income of at least P3.6 billion, or approximately 20 percent more than the forecast P3 billion this year.

But Kilayko said that the uncertainties of the global economy next year would create a challenging operating environment. Nonetheless, he said he is optimistic that UCPB can weather whatever external challenges are presented, as the bank’s internal conditions are ripe for moving forward.

“The steps the bank has taken in the prior years to reinvigorate the UCPB brand have heightened our market visibility, generated tremendous public goodwill and re-energized our workforce. We’re confident we can sustain this year’s growth momentum to next year,” the bank executive said.

Kilayko said that loans, treasury operations and low-cost funds would be the bank’s main growth engines in 2012. “These are the three key segments of our business that we will focus on next year.”

The bank official said that the upgrading of the bank’s automation system, the expansion and improvement of its delivery network, and the extensive skills training undertaken in the past years as part of their re-branding program, would carry the load entering 2012.

The strong backroom is expected to help push its total loan portfolio by another 25 percent from this year’s results. UCPB expects the big push in the lending sector to come from the consumer sector, particularly from mortgage lending.

It will likewise help catapult its treasury income by another 20 percent in 2012.

UCPB, which remains among the top 10 commercial banks, plans to open five more branches next year, to bring its total branch network closer to the 190-mark. It has already renovated 60 branches, relocated 18; and opened five new ones, extending its market presence to 183 locations.

Last year, it posted a net income of P2.39 billion, 44 percent higher the previous year’s P1.66 billion. Higher loan and investment volumes, better margins, hefty trading gains and lower fund cost propelled last year’s earnings growth.

In the first nine months this year, the bank reported a 20-percent increase in net earnings to P2.25 billion, from P1.88 billion in the same period in 2010.