DAVAO CITY, Philippines – The United Coconut Planters Bank reported a 12 percent increase in income during the first month of 2017 due to the surging demand for loans.
In a statement, UCPB reported a double-digit net income of P2.01 billion, a figure higher by 12 percent compared to the P1.8 billion it posted in the same period in 2016.
The increase in consumer loans, particularly car loans, is the main factor of the increase as UCPB’s loan portfolio expanded by 15 percent during the period, or P153.37 billion compared to last year’s P133.38 billion.
UCPB deposits also grew by 23 percent in the first six months of 2017 to a figure of P284.33 billion from P231.48 billion in the same period in 2016.
In the same statement, UCPB CEO Higinio O. Macadaeg, Jr. said the bank continues to post significant growth in its core business during the first six months of this year.
“We were able to expand our loan portfolio and even exceeded our year-to-date 2017 target. The strong demand for financing coupled with our other initiatives such as our strengthened relationships with partners, dealers and agents boosted the rise in consumer loan availments. Our consumer loan portfolio was funded by low-cost deposits that we continued to build this year. This resulted in better margins,” Macadaeg said.
UCPB’s net interest income also increased by 16 percent to P5.47 billion from P4.72 billion year on year, he added.
The bank also reported slip on its non-interest income mainly due to the lack of prevailing market opportunities.
It said non-interest income went down by 15 percent or P1.18 billion as compared to the P1.39 billion recorded in the same period last year.
UCPB’s Treasury gains also declined by 27 percent or to P427.04 million during the period while the bank’s increase in operating expenses was contained at 9 percent.
Macadaeg also expressed confidence UCPB’s operations will continue to propel in the remaining months of this year.
“Our performance for the first six months of the year reinforces our optimism that we will be able to hit our target for the year,” he said. (davaotoday.com)