STATE-OWNED Land Bank of the Philippines announced on Wednesday that its net profit grew double digit in the first nine months of the year, owing largely to lower cost of funds and lower provisions for losses during the period.
LandBank’s nine-month income hit P16.72 billion in 2021, up 21 percent from the P13.8 billion in the same period last year. With the development, the bank said it is on track to meet its net income target of P19.68 billion by yearend.
The bank’s total assets were up 13.6 percent to P2.564 trillion from P2.257 trillion in September 2020. This was driven by deposits of P2.267 trillion, which expanded by 14.68 percent.
LandBank’s capital also rose by 25.77 percent year-on-year to P208.17 billion from P165.52 billion. The bank attributed this to the P27.5-billion equity infusion made by the National Government in February 2021 plus the net income for the year.
Return on equity reached 10.74 percent, which is above the industry average of 6.48 percent.
“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,” Landbank President and CEO Cecilia Borromeo said.
The bank also said its “financial muscle” is driving the fulfillment of its social mandate of providing financial and support services to the agriculture sector and the country’s recovery and development efforts.
As of 30 September 2021, the bank’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 3 million.