State-run Land Bank of the Philippines (LANDBANK) posted double-digit growth in net income, assets, deposits and capital year-on-year for the nine-month period ending 30 September 2021.
The Bank’s net income grew by 21.2% to P16.72 billion from P13.8 billion in the same period last year, due to lower cost of funds and provision for losses. As a result, the Bank is on track to meet its net income target of P19.68 billion by year-end.
Total assets went up 13.6% to P2.564 trillion from P2.257 trillion in September 2020. This was propelled by deposits amounting to P2.267 trillion, which expanded by 14.68%.
Meanwhile, LANDBANK’s capital significantly rose by 25.77% year-on-year to P208.17 billion from P165.52 billion, attributed to the P27.5 billion equity infusion made by the National Government in February 2021 plus the net income for the year.
“LANDBANK has shown remarkable resilience against the economic shocks of the pandemic. As we continue to exceed our year-end targets in total assets and deposits, we are optimistic that the Bank’s overall financial performance will keep in step with the country’s continuing recovery,” said LANDBANK President and CEO Cecilia C. Borromeo.
In terms of financial ratios, LANDBANK’s return on equity reached 10.74%, which is well above the industry average of 6.48%.
LANDBANK’s financial muscle is driving the fulfillment of its social mandate of providing financial and support services not only to the agriculture sector, but contributing at large to the country’s recovery and development efforts.
As of 30 September 2021, LANDBANK’s total outstanding loans to the agriculture sector reached P228.21 billion. The total number of farmers and fishers assisted stood at 2.97 million, closer to reaching the year-end target of three million.
LANDBANK strikes a balance in fulfilling its social mandate while remaining financially viable, making it unique among universal banks in the country.
