MANILA – The Land Bank of the Philippines reported a net income of P4.26 billion for the first quarter of 2018, 52 percent higher than the P2.81 billion registered in the same period last year. This is also 13 percent higher than the Bank’s first quarter target of P3.78 billion.
This increase was brought about by a 47 percent surge in the Bank’s gross revenues which rose to P17.4 billion, from P11.8 billion recorded during the same period last year. A big chunk of the increase in the Bank’s net income is attributed to higher interest income on loans which grew by 25 percent, on account of the Bank’s total loan portfolio which expanded to P694.71 billion or 31 percent higher than the year-ago level of P529.16 billion.
The Bank’s return on equity and net interest margin at 15.74 percent and 3.33 percent also remain above the latest industry averages.
“This quarter’s performance assures us that we are gaining the momentum to meet our targets this year. The 31 percent growth in our loan portfolio is also a strong indicator of our fervent drive to reach more agribusiness borrowers, especially in the countryside. The Bank’s solid financial performance is our source of financial muscle to attain our bigger mission of promoting inclusive growth,” said LANDBANK President and CEO Alex Buenaventura.
Meanwhile, the Bank’s total assets grew by 19 percent to P1.63 trillion from P1.38 trillion in the same period last year. Total deposits likewise expanded significantly by 19 percent to P1.44 trillion from P1.22 trillion. Total capital stood at P108.37 billion, up by 22 percent from P88.63 billion as of end-March 2017.
The Bank also remains aggressive in strengthening its lending programs and tailoring new programs to the needs of its clients, especially its priority sectors. LANDBANK remains the biggest lender to the agricultural sector, especially small farmers and fishers as well as microenterprises and SMEs./PN
