LANDBANK reports strong Q1 performance, banks on profits to further drive inclusive banking efforts

Monday, May 20, 2019

Government-owned Land Bank of the Philippines recorded solid growth in the first quarter of the year, with higher net income of P4.75 billion and double digit growth in loans, assets and deposits.

The Bank’s net income for the three-month period is up by 12% from P4.26 billion in the same period last year. This is also 14% higher than the Bank’s first-quarter income target of P4.16 billion.

Return on equity for the quarter was at 13.04%, while net interest margin stood at 3.42%, both above the latest industry averages.

LANDBANK President and CEO Cecilia C. Borromeo attributed the strong first-quarter performance to substantial increase in income from loans and investments. Interest income on loans jumped 69% as the Bank’s gross loan portfolio grew to P867.32 billion from P708.10 billion in March 2018. Meanwhile, income from investments in financial assets grew by 43% to P6.36 billion from P4.44 billion.

The Bank’s total assets likewise increased by 16% to P1.89 trillion from P1.63 trillion, while deposits grew by 17% to P1.68 trillion from P1.44 trillion in March last year. Total capital stood at P136.47 billion, a 26% increase from last year’s P108.37 billion.

Borromeo said that this puts LANDBANK in a good position to further drive support for its priority sectors, especially to farmers and fishers, microenterprises and SMEs, agribusiness and other development players.

“We work hard to maintain the Bank’s sound financial position as the profits from our commercial banking operations allow us to move toward our bigger mission of promoting inclusive growth, especially in areas where financial services are not easily available or accessible,” said Borromeo, who added that the Bank is continuously investing on technology to pursue its inclusive growth thrust and to provide greater convenience to clients.

LANDBANK recently opened its 400th branch in Jagna, Bohol – marking its continuing expansion efforts to bring access to financial services and credit assistance, especially to the unbanked and underserved areas in the country.

The Bank’s 400 branches are supplemented by 49 Branch-Lites, 44 Lending Centers and 2,018 ATMs all over the country. It targets to bring its total number of branches to 410 by the end of the year.