UNITED Coconut Planters Bank (UCPB) reported a higher bottom line in 2015, buoyed by robust growth in consumer loans and treasury-related non-interest income, as well as the remarkable performance of its subsidiaries.
UCPB was placed under the supervision of the Governance Committee as a government- owned and -controlled corporation (GOCC), which allows it to essentially operate as a private bank pending the lifting of a temporary restraining order (TRO) issued by the Supreme Court in June last year which halted the sale of government’s 73.9 percent stake in UCPB, valued at P1.1 billion, and the bank’s privatization.
Net income rose by 5.1 percent to P3.3 billion last year from P3.14 billion a year earlier.
Total loans expanded by 10 percent to P127.7 billion from P116.0 billion, with consumer loans growing by 29 percent to P49.5 billion. The bank said loan quality remained good.
“This is reflected in the bank’s overall net non-performing loan (NPL) ratio at 1.98 percent,” UCPB said.
The lender noted growth in consumer loans was supported by an 8.4-percent year-on-year increase in deposits to P239.1 billion.
In terms of low-cost and high-cost deposits, the bank was able to maintain a healthy ratio at 70:30, which lowered its expenses by 3.7 percent.
Fee-based income grew by 6.5 percent at P1.0 billion, coming from consumer loans, deposits, and other product-related fees, the bank noted.
Trading income grew by 16 percent at P201.9 million from P174 million.
Operating expenses were relatively flat, increasing by 0.3 percent.
UCPB said its subsidiaries posted an impressive growth.
UCPB Savings Bank recorded a net income of P437.4 million, up 22.6 percent, while UCPB Leasing Finance Corp.’s registered a net income of P173.3 million from P149 million.
“We are very glad that we exceeded our P2.7 billion full-year net income projection. This is a concerted effort among the UCPB Group composed of the parent bank and its subsidiaries UCPB Savings Bank, UCPB Leasing and Finance Corp., and UCPB Securities Inc., UCPB President and Chief Executive Officer, Jeronimo Kilayko, said.
Kilayko noted the bank can sustain this upward trajectory even as it continues to look for a government-approved alternative to its suspended recapitalization program.