MANILA - United Coconut Planters Bank (UCPB) swung to a net income of P336 million in the first semester of 2009 from a net loss of P1 billion in the same period last year, owing to a robust core business and higher earnings from subsidiaries.

In a statement, the government-sequestered bank said its revenues for the period almost doubled to P3.8 billion from P2.1 billion as profits from subsidiaries--UCPB Savings Bank, UCPB Leasing and Finance Corp., and UCPB Securities--rose to P132 million from P66 million.

The sharp rise in the bank's revenues can also be attributed to the hefty increase in its deposits and loans, said UCPB executive vice president and chief finance officer Cesar Rubio.

UCPB's total deposits rose 53% to P120.6 billion at end-June 2009 from P78.7 billion at end-June 2008. Government deposits accounted for P30 billion of the increase while regular customer deposits contributed the remaining P12 billion.

Rubio said UCPB channeled the bulk of the increment in private deposits to loans, which grew by nearly a third or P7.6 billion to P32.2 billion from P24.6 billion. Both commercial loans and consumer loans grew by double digits, at 31% and 41%, respectively.  

He added that the bank invested the entire P30 billion government deposits in government securities, with the bank’s trading and investment securities climbing to P50 billion from P16.4 billion.

The expansion of both UCPB's securities and loan portfolios boosted its total assets to P148.6 billion from P98.18 billion a year ago.

"The increased size of our balance sheet has greatly enhanced UCPB’s earnings capacity," Rubio said.

UCPB's interest income rose to P3.1 billion from P1.8 billion while its non-interest income jumped to P718 million from P250 million.

Earlier, the bank said it was adding 191 units to its network of 220 automated teller machines this year to encourage more transactions.