Government-controlled Land Bank of the Philippines (Landbank) has extended P73.8 billion worth of loans to the cooperative sector as of end-February this year, benefiting almost 1,400 agri and non-agri-based cooperatives in the country.
The bank did not provide the comparable number for 2023, but Landbank’s lending to cooperatives have been increasing since mid-2020 when it only recorded P21 billion.
In a statement Tuesday, April 23, Landbank announced that it will provide financial support to the ACDI Multipurpose Cooperative (MPC) to “boost the co-op’s working capital."
ACDI MPC was granted rediscounting lines to provide affordable credit for its over 269,000 members, including active and retired members of the Armed Forces of the Philippines (AFP), and other uniformed personnel, said the bank.
Cooperative Chairman MGen Gilbert S. Llanto AFP (Ret) (4th from right) lead the signing of a loan agreement on 08 April 2024 at the LANDBANK Plaza in Manila
The ACDI MPC is the largest cooperative in the country in terms of assets. Landbank said its support “will help the co-op offer more loan packages at friendly rates to help members buy their dream home and vehicle, establish a business, or send their kids to school.”
According to Landbank President and CEO, Lynette V. Ortiz, “since 1996, we are proud to have supported ACDI MPC’s growth and expansion into one of the largest cooperatives in the country (and) we will remain committed to strengthening the co-op’s working capital to boost its lending activities for our uniformed personnel, and support expansion plans in their other business lines.”
For his part, ACDI MPC Chairman Major General Gilbert S. Llanto said that Landbank’s support is “a good affirmation of how far ACDI has gone also.”
Landbank is also supporting ACDI MPC’s digitalization to improve its operations and services via its digital banking solutions such as the LANDBANK weAccess for select banking transactions and the e-Tax Payment System (eTPS) for paying taxes online.
Last year, Landbank awarded ACDI MPC with a Distinguished Initiators and Movers of National Development (DIAMOND) Award for Outstanding Non-Agri-based Cooperative during its 60th anniversary last August 2023.
Landbank reported an all-time high net income of P40.3 billion in 2023, up by 33.8 percent from P30.1 billion in 2022 amid an expansion in its loans and investments as well as due to “prudent management”.
Last year, Landbank’s assets totaled P3.3 billion, up 4.2 percent year-on-year while deposits also increased by 4.5 percent to P2.9 trillion.
Landbank attributes its strong financial base to prudent management which enables them to further enhance support for the agriculture, fisheries and rural development (AFRD), as well as other key development sectors.
For this year, Ortiz said the bank will continue to provide the needed loans to more infrastructure facilities and basic services. She said they have the momentum to expand financial inclusion further.
“We look forward to 2024 as another banner year … underscoring our commitment to transformative and disruptive digital initiatives,” she added.