LAND BANK of the Philippines (LANDBANK) recorded a net income of P20.3 billion in the first half, a 93.5% increase from the P10.3 billion it earned in the same period last year.
“LANDBANK’s substantial expansion in net income is attributed to its prudent management of the cost of funds as well as sustained interest income from loans and investments,” the state-owned bank said in a press release on Wednesday.
“LANDBANK’s robust financial performance will continue to drive its intensified assistance to key industries, especially the agriculture sector, in support of the country’s continuing recovery. We will also build on this growth momentum to further our efforts to rebuild local communities, advance financial inclusion, and support the National Government’s development agenda,” LANDBANK President and Chief Executive Officer Cecilia C. Borromeo was quoted as saying.
LANDBANK did not provide figures on its second-quarter performance. In the first quarter, it posted a net income of P13.2 billion, 141% higher than the P5.48 billion a year prior, on the back of a one-time gain from its merger with United Coconut Planters Bank, which took effect in March.
The bank’s first-semester performance translated to a return on equity of 15.43% and return on assets of 1.19%.
Its net interest margin was at 2.92%.
LANDBANK’s assets grew by 11.8% to P2.8 trillion as of June.
Deposits with the bank went up by 10.1% year on year to P2.5 trillion.
Broken down, the government sector accounted for bulk of LANDBANK deposits, cornering a 62% share worth P1.5 trillion total deposits.
Meanwhile, 38% or P930 billion of total deposits were from the private sector.
The bank’s capital inched up by 1.9% year on year to P206.5 billion, which it attributed to the increase in its net income.
LANDBANK is mandated to provide financial assistance and support services to its priority sectors: farmers and fisherfolk, agrarian reform beneficiaries, as well as agri and aqua businesses and agri-aqua related projects of local government units and government-owned and -controlled corporations.
In 2021, the state-run bank’s net profit grew 27% to P21.75 billion from P17.14 billion a year earlier and higher than its P19.68-billion income target. — D.G.C. Robles