United Coconut Planters Bank (UCPB) posted a net profit of P2 billion, flat from the same period last year, amid a highly challenging operating environment that tightened margins and limited trading opportunities.
Total revenue rose by 8 percent year-on-year in the first six months to P8.67 billion, reflecting higher interest and non-interest income.
Six-month interest income in the comparative period rose by 9 percent year-on-year to P7.45 billion due to higher loan volume.
The bank grew its loan book by 10 percent year-on-year to P174.09 billion, driven by the continued strong demand for consumer loans, primarily from the real estate segment.
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Despite a lower income from fixed income securities, non-interest income went up by a modest 3 percent year-on-year to P1.22 billion due to higher fees, mainly from bancassurance, or cross-selling of insurance products in its branches, coupled with higher foreign exchange gain.
The growth in operating income in the first semester of 2018 was tempered by higher cost arising from an increase its loan loss provisions.
