LAND BANK of the Philippines (LANDBANK) recorded a 54% growth in its net income in the first nine months of the year on the back of higher interest earnings from loans and investments.
The state-run bank’s net income rose to P25.69 billion at end-September from P16.7 billion in the same period last year, pushing the lender closer to meeting its P25.71-billion profit target by yearend.
The nine-month figure translated to a return on equity of 14.89%, while return on assets was at 1.15%.
The growth in LANDBANK’s net income was driven by higher interest earnings, supported by increases from foreign exchange and non-recurring miscellaneous income, it said.
“The sustained earnings and solid capital base of LANDBANK keeps it in prime position for sustainable growth, which extends to the development sectors that we serve,” LANDBANK President and Chief Executive Officer Cecilia C. Borromeo said in a statement on Monday.
“We will continue to direct our robust loan portfolio to drive support for agriculture alongside other key industries,” Ms. Borromeo added.
LANDBANK’s capital reached P204.4 billion in the nine-month period.
Net interest margin was at 3.1%.
The state-run lender said its sound financial position is broadening its capacity to give financial support to development sectors.
The bank’s total outstanding loans to the agriculture sector stood at P259.2 billion, while the total number of farmers and fishers assisted reached 3.36 million.
The lender’s assets grew by 8% to P2.8 trillion at end-September from P2.6 trillion in the same period in 2021.
Deposits with the state-run bank totaled P2.4 trillion. Deposits were largely from private individuals, local government units, and national government agencies.
LANDBANK’s net income climbed by 27% to P21.75 billion in 2021 amid lower loan loss provisions. — Keisha B. Ta-asan