UCPB says OFW families help boost loans

Families of overseas Filipino workers helped fuel the 53 percent rise to P10.4 billion in consumer loans lent by United Coconut Planters Bank in the first nine months of the year. In an email message to reporters Wednesday, the bank reported that its consumer loans which totaled P6.8 billion in January-September 2009 grew more this year as clients borrowed to finance real estate obligations and car purchases. Many clients also borrowed money as personal loans, the bank added. OFWs now prefer to buy walk-up apartments, condominium units, and townhouses instead of low-cost houses, said David Mercado, UCPB first vice president for consumer banking. The shift from low-cost housing to mid-range properties helped expand the bank’s real estate bookings to P2.5 billion from P1.4 billion in the same comparable period. “The robust growth of the mid-range property segment is being fueled by the shift in the preference of overseas Filipino workers from low-cost townhouses, condominiums and walk-up apartments in the P3 million to P5 million range," Mercado said. The bank also reported that auto loans, including family cars and utility vehicles totaled P2.3 billion, up by 64 percent from P1.4 billion. Personal loans totaled P262 million, which grew by 32 percent from P198 million. The bank sees the last quarter of 2010 with an optimistic eye because of renewed business and consumer confidence and resilience of OFW money transfers, Mercado said. — VS, GMANews.TV