Landbank income up 38.2% in 2022

Government-controlled Land Bank of the Philippines (Landbank) posted a net income of P30.1 billion in 2022, up 38.2 percent from the previous P21.7 billion in 2021.

Landbank in a weekend statement said the P30.1 billion net income surpassed its 2022 target of P25.7 billion by almost P5 billion. This was also the first time its profits breached P30 billion.

Landbank President and CEO, Cecilia C. Borromeo, said 2022 was a milestone year for the state-owned bank and it was able to report earnings higher than its full-year target because of higher interest income from loans and investments. The bank also reported higher earnings from fees, commissions, foreign exchange, and from other income sources.

Land Bank of the Philippines head office in Manila

Borromeo said the bank’s “strong performance” and “solid balance sheet” were all indications that Landbank will “continue to overcome external headwinds and yield sustainable growth.”

“We look forward to a more favorable economic environment this year, as we take on a more prominent role in nation-building as a development institution,” she added.

Landbank President and CEO Cecilia C. Borromeo

During the period, Landbank’s financial ratios continued to be at “healthy levels” with return on equity of 14.37 percent. Its return on assets stood at 1.05 percent by end-2022 while net interest margin was at 2.97 percent.

The bank said that its “sound financial position is boosting its capacity to extend support to key development sectors, as part of its broader thrust of serving the nation.”

As of end-2022, Landbank’s assets grew by 21.5 percent to reach P3.1 trillion versus P2.6 trillion in 2021. Deposits also increased by 21.8 percent to P2.8 trillion from P2.3 trillion in 2021.

The government sector accounted for 67.6 percent or P1.9 trillion of total deposit base. These deposits are both from the National Government and government owned and controlled corporations which increased by 48.1 percent and 22.5 percent, respectively, said Landbank.

Meanwhile, Landbank’s capital was up by 1.4 percent to P210.6 billion by end-2022, compared to P207.7 billion in 2021. “This was accomplished despite the P8.5 billion in special cash dividends remitted to the (NG) in June 2022, due to the record net income,” it said.

Last year, Landbank completed its merger with United Coconut Planters Bank (UCPB). The merger involved some P2.9 trillion in total resources. As the surviving entity, Landbank’s total assets expanded.

The presidential Executive Order No. 142, signed on June 25, 2021, ordered the merger of Landbank and UCPB to "form a better capitalized and more resilient institution that will play a principal role in the National Government’s development and financial inclusion agenda."