State-owned Land Bank of the Philippines (LandBank) on Thursday reported a 4-percent rise in net income in 2017, indicating continued growth prospects this year.
LandBank reported net income of P14.05 billion for the year, up from P13.58 billion in 2016. The 4 percent expansion equates to P470-million worth of net earnings.
“With our solid performance in 2017 further reinforcing the bank’s foundation, we are confident with sustaining growth in 2018,” LandBank President and CEO Alex Buenaventura said.
LandBank, whose business is focused on providing loans to small farmers, fishers, cooperatives and local government units, said its core revenues increased in double digits as income from loans rose by 12 percent to P26.8 billion. This was P2.9 billion more than in 2016 when its income totaled only P23.9 billion.
Gross loan portfolio also surged by 30 percent to P674.3 billion.
Its income from investments also expanded significantly by, 28 percent to P21.17 billion in 2017. This was P4.68 billion higher, from only P16.49 billion in 2016.
LandBank’s investments portfolio also posted a double-digit increase of 25 percent to P580.65 billion during the year.
“Our core objective is to continuously grow the net income in order to expand support to our priority sectors, especially the farmers and fishers, cooperatives, microenterprises and SMEs [small and medium enterprises],” Buenaventura said.
Its deposit base grew by 15 percent, or P189 billion, to P1.42 trillion as government and private-sector deposits
increased.
LandBank’s return on equity in 2017 averaged 14.8 percent. Its total capital expanded by 23 percent to P104.59 billion.