Land Bank posts modest Q1 profit growth at P5.48 B
Land Bank of the Philippines said its profit has slightly improved in the first three-months of the year, placing the government-run lender on track to meet its full year target despite the continuing challenges set by the pandemic.
In a statement, Cecilia C. Borromeo, Land Bank president and chief executive officer said on Tuesday, June 8, that the lender’s net income grew a modest 1.67 percent in January to March this year to P5.48 billion.
Despite slow growth in profit, Borromeo is confident that Land Bank would hit its 2021 net income goal of P19.68 billion.
Meanwhile, Land Bank reported a 16.14 percent growth in total assets at end-March to P2.4 trillion from the P2.07 trillion in the same period last year.
The assets increase was driven by the 16 percent growth in deposits to P2.123 trillion from P1.827 trillion a year earlier.
Land Bank’s capital also rose 32 percent year-on-year to P194.59 billion due to the P27.5 billion infusion of the national government in February, in compliance with Republic Act (RA) No. 11494, also known as Bayanihan 2, or Bayanihan to Recover as One Act.
Under Bayanihan 2, the national government was mandated to provide additional monetary support to Land Bank to bolster its ongoing financial recovery interventions to sectors severely affected by the COVID-19 pandemic.
“The robust growth of our deposit base coupled with the equity booked from Bayanihan 2 allows us to extend greater financial assistance to our priority sectors, especially to small farmers and fishers, MSMEs, and other key development players,” Borromeo said.
“Land Bank remains in prime position to continue providing for the recovery requirements of clients and the nation at large,” she added.
Land Bank’s financial ratios have also remained resilient with a return on equity of 10.09 percent—higher than the industry average of 6.61 percent—while return on assets stood at 0.77 percent and net interest margin at 3.11 percent.
As part of its ongoing efforts to support sectors adversely affected by the pandemic, Land Bank has so far approved loans amounting to P93.14 billion under various lending programs as of April 30, 2021.