PROPELLED by its growing loan and investment portfolios, the United Coconut Planters Bank (UCPB) increased its net income to P958.13 million from January to March of this year from P929.19 million during the same period last year.
This developed amid adverse market conditions in the first three months of 2017. The bank also marked its 54th anniversary last May 15.
The UCPB's loan portfolio expanded by 18 percent to P149.52 billion from P126.62 billion as total deposits grew 10 percent to P255.74 billion from January to March of this year.
Net interest income also rose by 16.7 percent to P2.64 billion from P2.26 billion recorded in the same period last year.
“As in the past years, UCPB has been capitalizing on the rising consumer appetite for loans, particularly the consumer loans segment, and this has been fuelling the Bank’s growth. We expect that demand for consumer loans will continue in the year, but we will also look at growing the bottom line from other drivers of our operations,” UCPB president and chief executive officer Higinio Macadaeg Jr. said in a statement.
The bank also relied much on the volatile market as its foreign exchange and trust operations showed remarkable results.
Foreign exchange gains grew 70 percent to P38.05 million as against the P22.28 million recorded year on year while its trust operation reached P22.04 million in the first quarter.
The Unit Investment Trust Funds (UITF) managed by UCPB’s Trust Banking Group fared remarkably well in the first quarter with two of its funds topping in its category, based on the Fund Matrix page of the UITF website sponsored by member banks of the Trust Officers Association of the Philippines.
The challenging market conditions, however, caused the income from the bank's treasury operations to dip by 28 percent to P220.44 million.
The UCPB continued to exercise prudence as it kept its operating expenses within its budget at 11 percent.
For 2017, Macadaeg said UCPB will also look at expanding its source of income as it ventures into the bancassurance business.
"The bank is optimistic about our bancassurance business as it completes our product offering to our customers. This will allow our clients to better protect their funds through the products of our insurance partners," Macadaeg said.
The bank obtained the go-signal to cross-sell insurance products from the Bangko Sentral ng Pilipinas in October last year. UCPB's insurance partners are United Coconut Planters Life Assurance Corp. and UCPB General Insurance Inc.
