LANDBANK net income up 36% in first semester, profit to further fuel support for agri sector

Friday, August 9, 2019

The Land Bank of the Philippines grew its first semester net income by 36% to P10.58 billion from P7.79 billion in the same period last year. This is also 27% higher than the Bank’s semestral net income target of P8.32 billion.

Return on equity for the six-month period was at a healthy 14.10% while net interest margin stood at 3.53%, both above latest industry averages.

Driving the Bank’s profits for the period was the substantial growth in income from loans, which jumped 60% due to higher yield and growth in its gross loan portfolio. Its gross loan portfolio grew by 13% to P855.32 billion from P758.68 billion in June 2018.

“We are well ahead of our second-quarter target, and LANDBANK is well positioned for continued growth, with prudent operation and aggressive expansion of loan portfolio. Ensuring the Bank’s financial viability remains a priority as the profit from our operations allows us to channel greater financial support to the agriculture sector, especially small farmers and fishers,” said LANDBANK President and CEO Cecilia C. Borromeo.

The Bank’s total assets likewise went up by 7% to P1.81 trillion from P1.69 trillion in June 2018. Total deposits also grew to P1.59 trillion, up 6% from P1.50 trillion in June last year. Total capital meanwhile stood at P141.86 billion, 21% higher than P117.37 billion for the same period last year.

Alongside fortifying its universal banking operations, LANDBANK remains the biggest lender to agriculture especially to small farmers and fishers. As of June 2019, its gross loans to agriculture amounted to P219.63 billion. These include P42.31 billion in loans to small farmers (including Agrarian Reform Beneficiaries), fishers, and their associations; and P177.32 billion to other players in the agri-business value chain.

The Bank is aggressively stepping up its efforts to make direct credit accessible to small farmers and fishers through focused implementation of its direct lending programs. It further works closely with the Department of Agriculture and the Department of Agrarian Reform on joint programs, including the identification of farmers and Agrarian Reform Beneficiaries to ensure they can be reached and offered financing interventions.

LANDBANK has always been compliant with the Agri-Agra Credit Law which requires that at least 10% of banks’ total loanable funds shall be made available to agrarian reform beneficiaries and 15% to farmers and fishers. The share of its agri loans against its total gross loans was at 27.45% as of June 2019.

LANDBANK is the only universal bank present in all 81 provinces of the country with its nationwide network of 403 branches, 44 Lending Centers, and 12 Agrarian Operation Centers. These are complemented by 2,099 ATMs and 10 mobile ATMs.