UCPB nets P2 billion in first sem

Amid the industry’s highly challenging operating environment brought about by the rise in the cost of funds that tightened margins and limited trading opportunities, UCPB posted a net income of P2 billion at the end of the first half of the year, same as the previous year’s level.

Total revenues of the Bank increased by 8% yearon-year, from P8.01 billion to P8.67 billion, reflecting higher interest and non-interest income.

Interest income during the comparative period rose by 9%, from P6.83 billion to P7.45 billion due to a higher loan volume. Loan portfolio reached P174.09 billion, up by 10% from P158.90 billion in June 2017. The increase was driven by the continued strong demand for consumer loans, primarily from the real estate segment.

Despite a lower income from fixed income securities, non-interest income went up by 3 percent, from P1.18 billion to P1.22 billion due to higher fees, mainly from the Bank’s bancassurance coupled with higher foreign exchange gain.

The growth in operating income in the first semester of 2018 was tempered by the Bank’s conservative move to increase its loan loss provisions given its rising loan portfolio as well as the lower income from subsidiaries.

“We see margins improving in the next semester as we align loan rates with the increased deposit rates which should boost revenues from our lending business. Consumer banking and bancassurance will be our main revenue drivers for the rest of the year,” UCPB President and CEO Higinio O. Macadaeg, Jr. said.

The UCPB Trust Banking Group’s Peso Bond Fund, meanwhile, was recently awarded by the Chartered Financial Analysts (CFA) Society of the Philippines as the Best Managed Fund under the category of Long Term Bond Funds using Pure Fair Value thru Profit and Loss (FVPL) Valuation.

Earlier this year, the Bank, which is marking its 55th year, launched a new checking account product called UCPB CheckStarter targeting the huge millennial market.