UCPB sees 20-25% rise in income
UNITED COCONUT Planters Bank (UCPB) is looking to increase profits by as much as a fourth this year coming from a likely flat growth in 2016, its president said, with the lender counting on higher deposits even without opening new branches.
“Last year, we will be about the same as the previous year, but for 2017, we are projecting a 20- 25% increase in income. Consumer loans will continue to be our push, but we expect to increase our low-cost deposits and be able to redeploy it,” Higinio O. Macadaeg, Jr. UCPB president and chief executive officer, said in an interview on the sidelines of the annual bankers’ reception on Tuesday night.
The 12th biggest bank in asset terms reported a P3.3-billion net income at end-2015, rising by 5.1% from the previous year on the back of higher profits from lending activities, fees, and trading gains.
For the first nine months of 2016, bank profits surged to P2.88 billion from P1.99 billion booked in the same period in 2015. However, Mr. Macadaeg previously said they expect a lower income during the October- December period as they raise loan loss provisions to catch up with the increased lending.
For this year, Mr. Macadaeg said the bank will focus on improving the performance of its existing operations, shelving plans to expand its branch network.
“We are not going to expand or number of branches. What we are going to do instead is to make sure that all branches are efficient,” the bank official said. “We are
identifying branches that are not doing well, we’ll make them efficient, and probably consider relocating some of the branches who are not doing well to areas where we think they can do better.”
“We want to trim down our expenses. [ With a] combination of revenue growth and reduced expenses, we’re hoping to increase our profit by 20-25% this year.”
UCPB has 188 banking offices as of December, according to data from the Bangko Sentral ng Pilipinas Web site.
The future of UCPB hangs in the balance due to a temporary restraining order from the Supreme Court since 2015, following a petition by the group Coconut Farmers’ Organizations of the Philippines, Inc. who questioned the sale of Marcosian coco levy assets.
The state’s Privatization and Management Office was in the early steps of bidding out the government’s 73.9% stake in UCPB following twin executive orders signed by former President Benigno S.C. Aquino III when the high court placed the halt order.
The sale involves the government’s stake worth at least P1.1 billion and the infusion of at least P15 billion in fresh capital, which would allow the universal bank to meet Basel III requirements and fund business expansions.