UPDATE 1-UCBH sees NPAs, bad loan provisions to rise in Q2

* Sees Q2 net interest income of $70.6 mln

* Sees non-performing assets to rise in Q2

* Sees loan loss provision at $300 mln-$330 mln

Aug 6 (Reuters) - Bank holding company UCBH Holdings Inc UCBH.O said it expects provision for loan losses and non-performing assets to rise in the second quarter based on a review of its loan portfolio.

"While our nonperforming assets have increased, our delinquency trends are improving, which should have a positive impact on our second half 2009 results," Chief Executive Thomas Wu said. The San Francisco-based parent of United Commercial Bank, said it expects NPAs of between $835 million and $875 million at June 30. NPAs were $700.8 million at March 31, 2009.

Provision for loan losses -- the amount set aside to meet future losses -- are expected to be between $300 million and $330 million for the second quarter, up from $178.5 million reported in the first quarter.

The company also projected quarterly net interest income of $70.6 million, compared with $94.4 million, last year.

In July, UCBH said it would suspend dividend payments on its common and preferred stock and defer interest payments on its trust preferred securities, as part of its plan to strengthen capital.

Shares of the company closed at $1.38 Thursday on Nasdaq. (Reporting by Abhinav Sharma in Bangalore, Editing by Dinesh Nair) ((abhinav.sharma@thomsonreuters.com; within U.S +1 646 223 8780; Outside U.S +91 080 4135 5800; Reuters messaging: abhinav.sharma.thomsonreuters.com@reuters.net))