State-run Land Bank of the Philippines (LANDBANK) has received an upgraded Viability
Rating (VR) from Fitch Ratings, rising from ‘bb’ to ‘bb+’, reflecting the Bank’s improved
standalone financial strength. This upgrade highlights LANDBANK’s stronger capital buffers
and enhanced profitability outlook.
Fitch also reaffirmed LANDBANK’s Long-Term Issuer Default Rating (IDR) at ‘BBB’/Stable
and Government Support Rating (GSR) at ‘bbb’, emphasizing the Bank’s systemic
importance, full state ownership, and continued strong government support.
Strengthened Financial Position
The upward revision of LANDBANK’s VR signifies its resilience in navigating external
challenges while reinforcing its role as a key policy bank. The upgrade follows Fitch’s
assessment of the Philippine banking sector’s operating environment, which was revised
updward to 'bbb-'/stable from 'bb+'/stable, a key factor in the Bank’s credit profile.
“This latest rating upgrade is a testament to LANDBANK’s sound financial foundation and
resilience. With a solid capital base and an improving profitability outlook, we are well-
positioned to drive stronger financial performance while deepening our commitment to
agriculture and other key economic sectors that fuel national growth,” said LANDBANK
President and CEO Lynette V. Ortiz.
Stronger Profitability and Capital Position
LANDBANK’s earnings and profitability assessment was also a step-up to ‘bb’/positive from
‘bb-’/stable, with Fitch citing expectations of improved core profitability as credit costs
decline amid a resilient economy and falling interest rates.
The Bank’s capitalization is also projected to improve, supported by sustained organic
growth. As of end-2024, LANDBANK reported a Common Equity Tier-1 (CET1) ratio of
15.1%, well above the Bangko Sentral ng Pilipinas' minimum requirement of 10.25%,
reflecting strong capital buffers that support its lending capacity.
Advancing Financial Resilience
As the country’s largest Government-Owned and Controlled Corporation (GOCC) and the
biggest credit provider to the agriculture sector and its value chain, among other key
economic sectors, LANDBANK remains committed to advancing financial inclusion and
national development.
With its solid capital base and improving profitability outlook, LANDBANK continues to
expand its financial services, sustain credit accessibility for key industries, and reinforce its
crucial role in support of the National Government’s inclusive development agenda.
ABOUT LANDBANK
LANDBANK is the largest development financial institution in the country promoting financial
inclusion, digital transformation, and sustainable national development. Present in all 82
provinces in the county, the Bank is committed to provide accessible and responsive financial
solutions to empower Filipinos from countryside to countrywide.
