THE Land Bank of the Philippines (LandBank) has reported a net income of P10.58 billion for the first half of 2019, which is 36 percent higher than the P7.79 billion reported in the same period for 2018, as the Bank’s profits from loans posted growth.
In a statement issued on Friday, the LandBank said its net income of P10.58 billion was also able to breach its target for the first half of this year by 27 percent, with the target net income at P8.32 billion.
“Return on equity for the six-month period was at a healthy 14.10 percent while net interest margin stood at 3.53 percent, both above latest industry averages,” the LandBank said.
Driving the Bank’s profits for the period was the substantial growth in income from loans, which jumped 60 percent due to higher yield and growth in its gross loan portfolio.
Its gross loan portfolio grew by 13 percent to P855.32 billion from P758.68 billion in end-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.
In terms of assets, the Bank posted a 7- percent increase amounting to P1.81 trillion coming from P1.69 trillion in the same period last year.
Total deposits also grew to P1.59 trillion, up 6 percent from P1.50 trillion in June last year.
Total capital posted a 21-percent increase at P141.86 billion, from the P117.37 billion reported during the same period last year.
Biggest agri lender
LANDBANK also reported that it remains to be the biggest lender to the agriculture sector 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 agribusiness value chain,” the Bank added.
Furthermore, LandBank said that it has always been compliant with the Agri-Agra Credit Law which requires that at least 10 percent of banks’ total loanable funds shall be made available to agrarian reform beneficiaries and 15 percent to farmers and fishers. The share of its agriculture loans against its total gross loans was at 27.45 percent as of June 2019.
Image credits: Board of Investments