State-run Land Bank of the Philippines (LANDBANK) reported a 16.14% growth in total assets to P2.405 trillion as of March 31, 2021, from the P2.071 trillion in the same period last year.
The assets increase was driven by the 16.21% growth in deposits to P2.123 trillion from P1.827 trillion in 2020.
Despite the continuing challenges set by the pandemic, LANDBANK is on track to meet its year-end net income target of P19.68 billion, as net income grew a modest 1.67% to P5.48 billion for the first three months of the year.
LANDBANK’s capital also rose by 32.44% to P194.59 billion from P146.93 billion year-on-year. This was backed by the P27.5 billion infusion of the National Government in February under Republic Act (RA) No. 11494 or the Bayanihan to Recover as One Act (Bayanihan 2), designed to bolster the Bank’s ongoing financial recovery interventions to sectors severely affected by the COVID-19 pandemic.
“The robust growth of our deposit base coupled with the equity booked from Bayanihan 2 allows us to extend greater financial assistance to our priority sectors, especially to small farmers and fishers, MSMEs, and other key development players. LANDBANK remains in prime position to continue providing for the recovery requirements of clients and the nation at large,” said LANDBANK President and CEO Cecilia C. Borromeo.
The Bank’s financial ratios have also remained resilient with a return on equity of 10.9%—higher than the industry average of 6.61%—while return on assets stood at 0.77% and net interest margin at 3.11%.
COVID-related loan programs
As part of its ongoing efforts to support sectors adversely affected by the COVID-19 pandemic, LANDBANK has so far approved loans amounting to P93.14 billion under various lending programs as of April 30, 2021.
Among these programs include the I-RESCUE (Interim REhabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19) Lending Program with total approved loans of P20.07 billion for 434 borrowers comprised of 292 Micro, Small, and Medium Enterprises (MSMEs), 81 cooperatives, 56 large corporations, and 5 Microfinance institutions (MFIs). From the initial program fund of P10 billion, it was previously doubled to P20 billion and most recently increased further to P50 billion to accommodate increasing applications.
Under the RISE UP LGUs (Restoration and Invigoration package for a Self-Sufficient Economy towards UPgrowth for local government units) Program, LANDBANK has approved loans totaling P72.18 billion for 245 LGUs nationwide to help revive their local communities and recover from the adverse economic impact of the pandemic.
Finally, LANDBANK has approved loans amounting to P889 million to 20 academic institutions under its ACADEME (ACcess to Academic Development to Empower the Masses towards Endless Opportunities) Lending Program, which aims to boost the capacity of private academic institutions to implement a “study now, pay later” scheme for students.
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