Government-controlled Land Bank of the Philippines (Landbank) reported a net income of P20.3 billion in the first six months, up by 93.5 percent year-on-year from P10.3 billion boosted by significant increases in assets, deposits and loans.
As of end-June, the country’s second biggest bank had total assets of P2.8 trillion. It is 11.8 percent higher compared to same period last year.
The bank said the P2.5 trillion deposits, up 10.1 percent year-on-year, contributed to the expansion in asset size. The government or public sector accounted for 62 percent of Landbank’s total deposits at P1.5 trillion. The private sector had 38 percent at P930 billion.
Landbank President and CEO Cecilia C. Borromeo said Wednesday, Aug. 3, that the double-digit growth in assets and deposits were due to “prudent” management of the cost of funds and interest income from its loans and investments.
“Landbank’s robust financial performance will continue to drive its intensified assistance to key industries, especially the agriculture sector, in support of the country’s continuing recovery,” said Borromeo.
She said the bank for the rest of the year will build on this growth momentum to help local communities as well as “advance financial inclusion and support the National Government’s development agenda.”
During the period, the state-owned bank’s capital stood at P206.5 billion, up 1.9 percent year-on-year.
Meanwhile, Landbank’s financial ratios remain at healthy levels, with return on equity at 15.43 percent, return on assets at 1.19 percent, and net interest margin at 2.92 percent.
“Through the years, Landbank has grown into one of the leading universal banks in the country, while remaining faithful to its social mandate to promote inclusive and sustainable development,” said the bank in a statement.
Landbank turns 59 on Aug. 8.
Landbank on March 1 completed its merger with United Coconut Planters Bank (UCPB). The merger involved some P2.9 trillion in total resources. As the surviving entity, Landbank’s total assets expanded.
The merger also increased Landbank’s branches to 677 with 2,800 automated teller machines and 228 cash deposit machines nationwide.
Landbank said all UCPB branches will continue to operate and serve UCPB customers until the systems integration and accounts migration to Landbank are completed.
The presidential Executive Order No. 142, signed on June 25, 2021, ordered the merger of Landbank and UCPB to “form a better capitalized and more resilient institution that will play a principal role in the National Government’s development and financial inclusion agenda.”
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The article was originally published in Manila Bulletin and written by Lee C. Chipongian.
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