United Coconut Planters Bank (UCPB) said its net income for the first half of 2015 rose 7 percent from a year earlier to P1.3 billion, mainly driven by growth in its consumer lending business, fee-based income and trading gains.
UCPB is a provider of financial products and services, as well as expanded commercial banking services. Its client base consists of corporations, private and government institutions, middle market companies, small- and medium-sized businesses and individuals nationwide.
The bank’s consumer loans increased 28 percent on the back of a rise in consumer income levels, while corporate and commercial borrowings dropped 13 percent amid ample liquidity in the domestic market, it said in a statement.
Total deposit levels grew by more than 6 percent, marked by a 14 percent improvement in Current and Savings Accounts (CASA) levels by P19 billion to P157 billion while Time Deposits dropped 11 percent to P50 billion, which reduced deposit expense by more than 7 percent.
Net interest income climbed by more than 2 percent despite a 3 percent drop in net loans receivable, while loan interest income increased by 5 percent due to higher yields earned from the bank’s consumer loan portfolio.
Total non-interest income grew by 3.2 percent to P1.2 billion, pushed by a 7 percent improvement in both service fees and trading incomes.
Operating expenses recorded a slight increase of 2 percent amid a 10 percent rise in manpower costs, with upgrades in employee compensation and benefits, and a higher consumer business-related head count.
NPLs capped at 3%
Net non-performing loans remained controlled at less than 3 percent of the bank’s gross loan portfolio, attributed to improved credit quality processes and risk management, particularly in the consumer lending business.
UCPB President and CEO Jeronimo U. Kilayko said he expects that growth momentum will be sustained, with recapitalization bound to resume in due time to further boost the bank’s growth.