By Lee C. Chipongian
Land Bank of the Philippines, reported a net income gain of 23 percent year-on-year at P13.97 billion as of end-September from P11.36 billion same time in 2018.
Landbank, the country’s fourth biggest commercial bank and the largest government bank, in a statement Monday expressed confidence that it will meet its 2019 income target of P16.64 billion due to strong income from loans and investments.
According to bank president and CEO Cecile C. Borromeo: “We continue to grow (Landbank’s) financial position as the bank’s profitable operations allow us to consistently drive support for our priority sectors, especially farmers and fishers.”
Borromeo returned to Landbank as its CEO last March after a two-year stint as Development Bank of the Philippines (DBP) top official. She was executive vice president of Landbank before joining DBP in 2017.
The bank’s third quarter net income exceeded its internal target of P12.48 billion by 12 percent, she said.
In the meantime Landbank’s return on equity slightly improved to 13.41 percent from 13.15 percent same time last year.
As of end-September, Landbank’s total assets increased 11 percent year-on-year to P1.96 trillion from P1.77 trillion while deposits also rose by 11 percent to P1.74 trillion from P1.57 trillion. Its capital base grew by 16 percent to P144.87 billion from P124.88 billion end-September 2018.
Borromeo said income from loans as of end-September increased by 50 percent as its lending activities continue to grow. Its loan portfolio amounted to P869.31 billion, up almost four percent from P838.75 billion last year.
The bank, by its mandate, is the largest source of agriculture loans. During the first three quarters, its gross loans to the agriculture sector totaled P227.55 billion. Of this amount, P41.25 billion are loans to small farmers including agrarian reform beneficiaries as well as fishers, and their associations. Another P186.29 billion were released to agri-business value chain borrowers.
Landbank said it continues to be “largely compliant” with the Agri-Agra Credit Law, with a 21.74 percent compliance level based on prescribed allocation for agrarian reform credit. It also has a 429.29 percent compliance level for other agricultural credit.
The Agri-Agra Credit Law requires banks to allot at least 10 percent of its credit allocation for agriculture and agrarian reform credit and another 15 percent to borrowers for other agricultural purposes.