UCPB Savings lifts earnings by 22% in first 7 months

MANILA, Philippines - UCPB Savings Bank has reported a 22-percent increase in its net income in the first seven months of 2010.

From net earnings of P132 million from January to July 2010, this rose to P161 million this year.

UCPB Savings president Joseph Justiniano said higher revenues from loans boosted income growth.

“We capitalized on the strong consumer confidence to aggressively push our auto, housing and cash loans to salaried private employees, salary loans to public school teachers and commercial loans to businesses engaged in trading consumer goods – with very good results,” Justiniano said.

The commercial loans had the largest portfolio of total loans, followed by personal or salary loans, auto and mortgage loans. Commercial loans amounted to P1.4 billion or 27.73 percent of total, salary loans at P1.3 billion (18.43 percent), auto loans at P900 million (18.25 percent), mortgage or real estate loans amounted to P600 million (12 percent), and a mix of other loans, P700 million (a little over one percent).

At the end of July 2011, total loans rose to P4.8 billion, 23 percent higher than the P3.9 billion a year ago. As a result, interest earnings from loans increased by nearly a third, propelling total interest income to a 25-percent rise, from P347 million to P434 million.

Total deposits as of end July this year stood at P3.9 billion, or roughly four percent higher than the P3.7 billion a year ago.

Capital adequacy ratio (CAR) Tier 1 stood at 31.67 percent. Return on equity (ROE) was placed at 15.24 percent while return on asset (ROA) was recorded at 4.51 percent.

The thrift bank of the United Coconut Planters Bank (UCPB) plans to open one more lending center in Northern Luzon to tap the steadily growing consumer and personal loan market in that region. It currently operates lending centers in Metro Manila, in Cagayan de Oro and in Iloilo City.

A lending center is an extension of a branch, which focuses mainly on facilitating loans.

Meanwhile, the bank chief executive said UCPB Savings would open five new branches in the second semester to generate more funds for its expanding lending operation.

The five new branches will bring the thrift bank’s total branch network to 38 from the present 33. It has also relocated eight to more accessible locations with bigger deposit potentials and is renovating four others to enhance their market visibility.

Justiniano said the thrift bank is prepared to expand its distribution network organically, or via the acquisition mode. “As long as it fits our profile requirements and strategic goals,” he said.

UCPB Savings is a product of the merger of four thrift banks in 1989 and the acquisition of UCPB Rural Bank in 2005. It ranked eight in terms of capital and 14th in terms of assets of the 73 industry players last year.