UCPB Savings Bank shifts to high gear in second semester

The UCPB Savings Bank (USB) wants to be known as "the consumer bank" as well as solidify its place among the top 10 thrift banks by 2008. USB is the thrift and savings bank of the United Coconut Planter Bank (UCPB).

In end 2005, USB placed among the top 15 in terms of resources and deposits, and seventh in terms of capital base.

"After a consolidation period, we will be going full throttle starting second semester of the year," Edmond E. Bernardo, UCPB Savings president said.

USB acquired UCPB Rural Bank last year, and is in the final touches of integration.

The acquisition resulted in a branch network of 33 with two more branch licenses due to incentives granted by the Bangko Sentral ng Pilipinas (BSP) for merger and acquisitions.

"We will be relocating two more in Central and Northern Luzon," Bernardo said, adding that they are open to acquire branch licenses to grow by a minimum five branches a year.

They are also open to acquiring one or two more thrift banks to meet their expansion targets.

"Acquisition of other banks is a real option, organic growth may be too slow if we are to reach our 2008 target of being solidly among the top 10 among the thrift banking system. Principal target area is Central and Northern Luzon," he added.

It will also piggy bank on UCPB’s core business system (CBS), a technology banking platform to make it among the best thrift bank in terms of technology.

It will also be slowly shifting to the traditional consumer loans such as property loans, auto loans, personal loans as well as introducing new banking products to increase its competitiveness.

As of April, deposits hit P55 million of which 76 percent are cash accounts/savings accounts (CASA).

In contrast, past due ratio dropped to 7.68 percent while its non-performing loans (NPLs) stood at a mere P60 million.

Net income rose from P35.045 million in April 2005 to P41.880 million end April this year.

Total assets rose to P3.696 billion end April this from P3.586 billion in the same period last year. Capital base rose to P1.48 billion.

Meanwhile, total deposits expanded from P2.039 billion in 2005 to P2.096 billion this year, despite a slight drop in loans P2.285 billion last year to P2.244 billion.

UCPB Savings is a 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. – Ted Torres