UCPB reports first half net profit up up 18% to P1.3B

United Coconut Planters Bank (UCPB) on Wednesday said its net profit rose to P1.3 billion in the first half of the year, up 18 percent from P1.1 billion a year earlier. Higher earnings were generated by loans and investments and bigger income contribution from its subsidiaries. UCPB executive vice president and chief finance officer Cesar Rubio said the bank expanded its loan portfolio and trading and investment securities holdings substantially during the period as deposits continued to grow steadily. [See: EARNINGS: UCPB posts 11% increase in Q1 results] At the end of June, UCPB’s total loans reached P64 billion, up 15 percent from P55.5 billion, while trading and investment securities totaled P49.4 billion, up by 9 percent from P45.4 billion. The bank’s total deposits rose by 10 percent or P13.4 billion, from P137.6 billion to P151.0 billion during the period, with most of the increment coming in the form of low-cost current accounts and savings accounts. Rubio said the higher loan and investment volumes coupled with lower cost of funds pushed up the bank’s net interest income by 16 percent or nearly P400 million, to P2.9 billion from P2.5 billion. Income from subsidiaries UCPB’s subsidiaries also posted higher income in the first six months of the year compared to the same period last year. Their combined profits totaled P191 million, 23 percent higher than the P155 million a year earlier. The bank's main subsidiaries are UCPB Savings Bank, UCPB Leasing and Finance Corp. and UCPB Securities. Rubio said that UCPB expects to sustain the earnings growth into the second semester. The bank’s total assets increased to P184.9 billion at the end of the first half, up by 9 percent or P15 billion from P169.9 billion. Total capital of the bank went up by 18 percent or P2.4 billion, to P15.6 billion from P13.2 billion. Rubio said UCPB plans to open five more branches this year to further boost deposit generation and lending operation. This will bring the number of UCPB branches to 188. P3-B paper issuance The bank is also issuing this August P3 billion worth of long-term negotiable certificates of deposit (LTNCD) since the Bangko Sentral ng Pilipinas has already approved the planned offering. Proceeds from the LTNCD issue will be deployed to increase long-term assets, mainly loans to the consumer sector, Rubio said. UCPB has been steadily growing its loans to the consumer sector where margins are higher. In the first six months of the year, the bank booked P3.7 billion of consumer loans, 16 percent more than the P3.2 billion in the same period last year. — MRT/VS, GMA News