UCPB books higher earnings at end- Sept.

UNITED COCONUT Planters Bank (UCPB) saw its bottom line jump 45% in the first nine months of the year driven by the bank’s heightened consumer loan activities and stable cost management efforts.

In a statement e-mailed to reporters on Tuesday, the country’s 12th largest bank in asset terms said it booked a 45% increase to P2.88 billion in its net income in the January to September period from P1.99 billion in the same period last year.

“Appetite for consumer loans continues to grow as well as our deposits. We are on track to meet our targets this year, and we thank our customer for their continued trust in the Bank,” Hignio O. Macadaeg, Jr., the newly appointed president and chief executive officer of UCPB, was quoted saying in a statement.

Overall net interest income also climbed 15% to P7.21 billion in the January to September period.

Amid a double-digit growth in the bank’s consumer loan bookings and corporate loans, total loans stood at P136 billion, 17% higher than last year.

Likewise, consumer loans posted a 28% increase to P58.2 billion during the nine-month period end- September from P39 billion last year. While corporate loans reached P77.8 billion during the period, up 10% in 2015.

Its net low-cost current and savings account — used to fund the bank’s consumer loans — rose by 16% to P175.9 billion in the first nine months from P151.3 billion last year.

Non-interest income also rose to P2.42 billion, up 31% from P1.85 billion in 2015 primarily driven by its trading gains, which posted a 64% increase to P1.14 billion during the period from P685 million in the comparable period a year ago.

“Despite the growing manpower requirement primarily to support the bank’s consumer loan thrust, growth in operating expenses was maintained at five percent to P5.57 billion from P5.30 billion year on year,” UCPB said.

The bank surpassed its 2015 net income target when it posted a 5.1% increase to book P3.3 billion in earnings amid its robust lending business, fee-based income and trading gains.

In September, UCPB said it has already started to migrate its automated teller machine cards and machines to the Europay, MasterCard and Visa technology, in compliance with the central bank’s mandate and deadline by Jan. 1, 2017. •