UNITED COCONUT Planters Bank (UCPB) saw higher net earnings in 2017 as income from its businesses grew across the board.
In a statement sent to reporters late Monday, the state-owned bank said it posted a P4.08-billion net income in 2017, higher by 22% from its earnings posted in 2016.
The bank’s interest income grew 7% to P14.2 billion, driven by strong growth in loans, which stood at P171.7 billion, higher than the P156 billion booked in 2016.
Deposits, meanwhile, rose to P279.5 billion from the P265.6 billion posted at end-2016.
UCPB’s non-interest income also climbed 5.2% to P2.7 billion on the back of strong trading and securities gains, as well as revenues from its newly launched bancassurance business.
The bancassurance business of UCPB, in partnership with life insurer Cocolife and non-life insurer UCPB General Insurance Co., Inc. yielded total premiums of P1.05 billion in the nine months after its launch in April last year.
The bank is “eyeing to sustain the double-digit core earnings growth this year, anchored on the continued expansion of our consumer and middle market lending operations and a greater push to increase non-interest revenues from our other fee-based services like bancassurance,” UCPB President and Chief Executive Officer Higinio O. Macadaeg, Jr. was quoted as saying in the statement.
Bancassurance is a partnership between a bank and an insurer wherein the insurance provider can offer its products to the lender’s clientele.
Meanwhile, UCPB expects to double the premium production of its bancassurance business following the central bank’s approval late last year for the bank to offer variable life insurance, a hybrid life insurance with an investment component.
Aside from this, the lender’s newly launched Visa debit card embedded with an EMV (Europay Mastercard Visa) chip also contributed to its fee income business.
At end-September 2017, UCPB was the eleventh biggest commercial bank in asset terms worth P308.3 billion. — KANV