State-lender Land Bank of the Philippines (Landbank) said that its profit dropped last year due to reduced economic activities brought about by the coronavirus pandemic.
In a statement, Cecilia C. Borromeo, Landbank president and chief executive said that the bank’s net income declined by seven percent to P17.1 billion last year from P18.5 billion in the previous year.
But despite the decline in profit, Borromeo said that Landbank’s deposits breached the P2-trillion mark in 2020, bringing its total assets to record a growth of 16 percent to P2.362 trillion from P2.033 trillion in 2019.
Landbank’s deposits expanded to P2.093 trillion, 17 percent higher compared with P1.783 trillion in the previous year. Investments also grew 41.4 percent to P982.5 billion from P694.9 billion.
“Landbank posted marked growth in assets and deposits in 2020—a record achievement given the widespread economic impact of the health crisis,” Borromeo said.
“We will build on these gains and continue along this path to better serve our priority sectors, especially small farmers and fishers, micro, small and medium enterprises and other key development players,” she added.
Meanwhile, year-end 2020 capital increased by 13 percent to P168.3 billion from P149.0 billion in 2019.
The bank’s financial ratios also remained strong despite the challenges set by the pandemic, posting a return on equity of 10.80 percent, which is well above the latest industry average.
Return on assets, meanwhile, stood at 0.78 percent and net interest margin at 3.16 percent. Common Equity Tier 1 ratio continued its steady growth year-on-year from 12.74 percent to 15.17 percent.
Landbank’s total loan portfolio to farming and fishing industries also expanded from P236.31 billion in 2019 to P237.62 billion in 2020. Of the amount, P43.98 billion benefitted small farmers and fishers, cooperatives and farmers’ associations, rural financial institutions, and other conduits.
Landbank has also assisted 2.67 million farmers and fishers nationwide as of end-2020, or a 133.5-percent accomplishment rate over the full-year target of two million.
Of that total, 718,875 small farmers were assisted through the Rice Farmers Financial Assistance and Financial Subsidy to Rice Farmers Programs jointly implemented with the Department of Agriculture.