UCPB Hikes Consumer Loans by 42% at the end of July 2010

 

Riding on the continued strong demand for passenger cars and residential homes, UCPB posted double-digit consumer loan growth in the first seven months of the year.

 

The bank’s consumer loans portfolio grew by 42 percent year-on-year, from P6.9 billion to P9.8 billion, as it booked 67 percent more real estate, auto and personal loans from January to July 2010 than in the same period last year.

 

UCPB first vice president for consumer banking David Mercado said the bank capitalized on the surge in demand for mid-range residential properties to almost double its real estate loan bookings during the period, from P1.0 billion to P1.9 billion.

 

The robust growth of the mid-range property segment is being fueled by the shift in preference of the overseas Filipino workers from low-cost housing to townhouses, condominiums and walk-up apartments in the P3 million to P5 million price range, Mercado said.

 

UCPB also took advantage of the brisk demand for passenger cars, again driven by rising overseas remittance, to increase its auto loan bookings by 59 percent, from P1.1 billion to P1.7 billion, he said.

 

Passenger car sales rose 34.7 percent in the first seven months of 2010 over the same period last year, according to the Chamber of Automotive Manufacturers of the Philippines, Inc.

 

The bank’s personal loan bookings likewise grew strongly, increasing by 44 percent, from P137 million to P197 million, to bring the portfolio size to P456 million.

 

“We’re bullish about our growth prospects for the rest of the year,” Mercado said, pointing out that the improvement in the overall business and consumer confidence and the continued rise of overseas remittances are likely to further boost personal investments and consumption.

 

The planned expansion of UCPB’s branch network in the second half of the year will generate additional volume, he said, explaining that the bank’s branches contribute about 50 percent of total consumer loan bookings.

 

UCPB is opening five branches in Alabang, Global City and Malabon in Metro Manila and Bacoor and Dasmariñas in Cavite before the year ends.

 

Mercado said the continued growth of low-cost current account and savings account deposits, which fund consumer loans, greatly enhances UCPB’s competitive position. The bank expanded its current account and savings account deposit base by 16 percent year-on-year at the end of July 2010.

 

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Profits of UCPB Subsidiaries Rise 43%

in first seven months of the year

 

Profits of UCPB’s savings bank, leasing company and stockbrokerage house in the first seven months of the year rose 43 percent from a year ago.

 

The bank’s three subsidiaries earned a combined P227 million from January to July 2010, P68 million higher than the P159 million in the same period last year, as each posted double-digit growth in its core businesses.

 

UCPB Savings Bank hiked its income by 57 percent during the period, from P87 million to P137 million, on the back of higher interest income from loans.

 

The thrift bank expanded its loan portfolio by 33 percent, from P3.0 billion to P4.0 billion, as its deposits increased by 32 percent, from P2.8 billion to P3.7 billion.

Higher interest income from loans also pushed up UCPB Leasing and Finance Corp.’s profits by 32 percent, from P68.5 million to P90.4 million.

 

The financing company grew its loan portfolio by 28 percent, from P1.4 billion to P1.8 billion.

 

UCPB Securities increased its earnings by 17 percent, from P4.0 million to P4.7 million as stock trading picked up.

 

The stockbrokerage house capitalized on the renewed investor interest in domestic equities to boost commission revenues from stock trading by 25 percent.

 

With still five months to go in the year, the three subsidiaries’ earnings have already nearly equaled their combined full-year profits last year of P280 million.

 

 

 

 

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