UCPB to increase consumer loans mix

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Sunday, February 9, 2014

THE United Coconut Planters Bank (UCPB) is booking P15 billion this year for its consumer loan portfolio in line with its goal of reaching a 50:50 consumer to corporate loans ratio in 2016.

UCPB Corporate and Consumer Banking Group executive vice president Higinio “Joey” O. Macadaeg, Jr. said the consumer loan portfolio is inclusive of car loans, personal loans and housing loans.

Housing loan portfolio for this year is at P9 billion, car loan is at P4.5 billion and the remaining amount is allocated to personal loans, which include salary loans and personal use loans.


“In UCPB, we want a Philippine economy that is consumer-driven, we feel there is a very good market segment (for consumer loans),” said Macaraeg.

He said it was only in 2005 when the bank started to “seriously consider” reinforcing its consumer loan products. Years before that, the 50-year old bank had been mainly catering to corporate loans with 90 percent of the loan portfolio allotted to it and only 10 percent for consumers.

UCPB now has a share of 65 percent for corporate loans and 35 percent for its consumer loans. Macaraeg said it is eyeing to make it to 60 percent corporate and 40 percent consumer this year. In 2013, UCPB booked almost P12 billion for consumer loans.

UCPB Consumer Banking Division first vice president and division head Lee L. De Claro said the bank also considered catering its products to consumers because there is “less risk” in consumer loans than in corporate loans.

“In consumer loans, the risk is spread to thousands of borrowers. It is not likely that they (consumers) will all fail to pay at the same time. Unlike corporate loans na when it fails, you get a billion-peso problem. Consumer loans are less risky because there is more distribution of risks,” said Macaraeg.

Among consumer loan types, the bank officials said housing loan is the most availed of. Macaraeg said this is attributed to the country’s booming real estate sector.

He said UCPB is putting a bigger loan volume on housing because these are “safer loans” and require less capital than car loans.

On Saturday night, UCPB officials met with Cebu’s real estate brokers and agents at the Quest Hotel and launched UCPB The Outstanding Performance (TOP) Circle where member brokers and agents will be endorsing UCPB’s housing loan to their buyers who are interested to get a loan. Members of UCBP TOP Circle will be entitled to incentives for their loan referrals and other promos.

On the same day, the bank also organized a loan fair in Ayala Center Cebu which started on Friday and ended yesterday.

Macaraeg said they do not have an exact targeted amount for Cebu’s loan fair as its primary objective is to increase Cebuano’s awareness of UCPB’s consumer loan offerings.

Several car brands like BMW, Peugeot, Kia and Mitsubishi also showcased their products during the loan fair.

In two weeks, UCPB will be organizing a loan fair in Abreeza Mall in Davao. Last year, the bank organized two loan fairs in Metro Manila.

UCPB is also offering small business loans where borrowers can avail themselves of up to P10 million.

UCPB has a total of 183 branches nationwide, with 110 of which located in Metro Manila. The bank has eight branches in Cebu.

Published in the Sun.Star Cebu newspaper on February 10, 2014.


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