EARNINGS: UCPB posts 11% increase in Q1 results

The United Coconut Planters Bank (UCPB), the country’s eighth largest bank, posted an 11-percent increase in its first-quarter earnings to P640 million from P576 million in the same period last year, the bank said in a statement Wednesday. UCPB said the development puts it on track to surpassing its P2.4-billion full-year net income in 2010. Cesar Rubio, UCPB executive vice president and chief operating officer, said the bank focused on building its loan portfolio, expanding its deposits and improving the fund mix, and generating more fee income due to the limited opportunities for trading gains in the first three months of the year. “UCPB’s total loans reached P47.6 billion at the end of March 2011, up 11 percent from P43 billion in March 2010. The loan expansion pushed up the bank’s interest income by 11 percent to P2.1 billion from P1.9 billion during the period," the bank said. On the funding side, UCPB posted an 11-percent increase in total deposits to P144.5 billion from P129.8 billion. “The bulk of the deposit growth came in the form of low-cost current account and savings account, enabling the bank to cut its interest expense by 18 percent to P519 million from P631 million," the bank said. UCPB said the combination of higher loan volume, lower cost of funds, and better interest margins boosted its net interest income by 19 percent to P1.5 billion. The bank added that revenues from service charges, fees, commissions, and other non-interest income sources also increased by 14 percent to P234 million. It also said earnings from subsidiaries also rose by five percent to P92 million. Rubio said the bank projects a stronger second quarter as its five new branches, which opened in the last quarter of 2010, gain headway. He said the bank plans to open at least five more branches this year to sustain deposit and loan growth. — Paterno Esmaquel II/VS