United Coconut Planters Bank’s (UCPB) net income in the first quarter grow faster from a year earlier on the back of double-digit growth in both its deposit and consumer loan portfolios.
In a statement on Tuesday, UCPB said its net income in the first three months of 2016 rose by 51 percent to P929 million from P615 million a year earlier.
On a quarterly basis, however, the bank’s net income dropped by 30 percent from the P1.34 billion in the last quarter of 2015.
Loan portfolio increased by 15 percent or P17.4 billion to P132.3 billion led by consumer loans business which grew by P9.3 billion or 27 percent giving the bank better interest margins and a more secured loan profile, it said.
UCPB’s consumer loans were funded by deposits, which went up by 14 percent or P28.6 billion, bulk of which came from current and savings account, which grew by 16 percent or P23.6 billion.
As a result, the bank said it posted a 16-percent growth in its net interest income, supplemented by a 17-percent growth in non-interest income because of a 20-percent increase in trading gains.
Its operating expenses were kept to a minimum, showing only a 4 percent rise even with an increase in headcount to support the bank’s focus on consumer loans.
UCPB also improved its disposal of acquired properties resulting in substantial gains of P124 million.
“We are looking at bright prospects for the rest of the year based on our remarkable performance for the first quarter. We will continue to focus on our core business even as we improve our non-interest income in order to attain, if not exceed, our 2016 targets,” UCPB President Jeronimo Kilayko said.
The bank has 232 branches and 341 automated teller machines nationwide including the UCPB Savings Bank network.