Landbank net income up by 21.2%

Government-owned Land Bank of the Philippines posted a net income of P16.72 billion as of end September this year, up by 21.2 percent compared to P13.8 billion same time in 2020, backed by deposits and increase in assets and capital.

Landbank’s income also improved due to lower cost of funds and provision for losses, it said in a statement on Wednesday, Nov. 10. “As a result, the bank is on track to meet its net income target of P19.68 billion by year-end,” it also said.

“Landbank has shown remarkable resilience against the economic shocks of the pandemic. As we continue to exceed our year-end targets in total assets and deposits, we are optimistic that the bank’s overall financial performance will keep in step with the country’s continuing recovery,” according to its president and CEO Cecilia C. Borromeo.

In the first nine months, the bank had total assets of P2.56 trillion, up by 13.6 percent year-on-year. Deposits also grew by 14.68 percent to P2.27 trillion while capital base increased by 25.77 percent to P208.17 billion mainly due to a P27.5 billion equity injection from the government.

The bank continue to be profitable with a return on equity ratio of 10.74 percent compared to industry average of 6.48 percent.

As of end-September, Landbank’s total outstanding loans to the agriculture sector totaled P228.21 billion. “The total number of farmers and fishers assisted stood at 2.97 million, closer to reaching the year-end target of three million,” it said.