UCPB Savings eyes spot in top 10 thrift banks by 2008

With its branch expansion in full throttle, UCPB Savings Bank remains confident it would land in the top 10 among the country’s 89 thrift banks by 2008.

At the end of 2004, the bank is ranked eighth in terms of capital, 14th in terms of loan portfolio, 15th in deposits, and 16th in resources.

Last July, UCPB Savings absorbed sister company UCPB Rural Bank, increasing its potentials to barge into the top 10 list. Full integration will be realized by end-2005 or early 2006.

"And we still have the advantages inherent with being an affiliate of the United Coconut Planters Bank (UCPB) and the rest of its affiliates," said Edmond E. Bernardo, UCPB Savings president.

UCPB Savings will retain the client base of the rural bank while expanding its branch network. By the end of 2005, the thrift bank will have a network of 34 branches, 16 of which were absorbed from the rural bank.

Bernardo pointed out that the bank’s branch network was ideal in that most of the rural bank’s branches were located in the Visayas and Mindanao while the savings bank’s branches are located from Metro Manila and Southern Luzon. "We will penetrate a larger market and we will expand in areas where we can completely dominate."

The thrift bank will soon be opening its Bulacan branch, marking its "offensive" towards Central Luzon and the rest of Northern Luzon. It will be getting several branch licenses as a result of the merger, which is part of the incentive package offered by the Bangko Sentral ng Pilipinas (BSP) for mergers and acquisitions (M&As).

"The plan to lift the branch moratorium would allow us to increase our rate of branch expansion," the bank executive said. The BSP is seriously considering lifting the moratrium "to let market forces take its course."

By the end of this year, UCPB Savings is projecting a net income of P142 million, or 130 percent better than the P61 million profit in 2004. By 2008, the thrift bank expects net earnings to reach P255 million.

Total deposits is projected to reach P2.16 billion by end-2005, growing to roughly P2.5 billion the next year, and hitting P3.4 billion by 2008. Last year, deposits hit P1.9 billion.

Total loans reached P1.65 billion last year and is expected to expand to P2.25 billion by the end of this year. By end 2006, it is projected to expand further to P2.42 billion, and to P3.3 billion in 2008.

Last year, total assets was recorded at P3.42 billion and is seen to reach P3.67 billion this year. UCPB Savings targets its assets to expand to P4.1 billion in 2006 and balloon further to P5.6 billion by 2008.

Others challenges facing the thirft bank are developing and diversifying new loan portfolios and new deposit and investment products. Expansion areas are small and medium enterprises (SMEs), micro-lending, and the overseas Filipino workers (OFW) markets.

UCPB Savings is the product of the merger of four thrift banks in 1989 while the rural bank emerged out of the consolidation of 12 rural banks in 1991.