Landbank exceeds H1 income target

MANILA, Philippines - State-run Land Bank of the Philippines exceeded its target net income for the first half on the back of robust earnings from loans and investments.

In a statement, Landbank said it posted a net income of P7.43 billion from January to June, a flat growth from the P7.4 billion recorded in the same period last year.

However, the figure was eight percent higher than the bank’s mid-year net income target of P6.88 billion.

“We are confident about meeting our full-year target of P13.75 billion, as income from loans and investments remain strong,“ Landbank president and chief executive officer Alex Buenaventura said.

According to Landbank, its revenue from loans in the first half grew seven percent to P597.1 billion from P490.6 billion a year ago.

Revenue from investments rose nine percent to P9.2 billion from P8.4 billion.

Landbank said its return on equity as of end-June was recorded at 14.55 percent, while net interest margin stood at 3.03 percent, both above industry averages.

The bank’s assets also increased 15 percent to P1.5 trillion during the period from P1.3 trillion last year, while total deposits climbed 17 percent to P1.32 trillion from P1.13 trillion.

Its total capital stood at P97.4 billion, nine percent up from the end-June level in 2016.

Landbank, now on its 54th year, is the biggest lender to the agricultural sector, particularly the small farmers, fishermen, and micro, small and medium enterprises.

Buenaventura said the bank continues to boost its financial position to serve more Filipinos in their priority sectors.

“We continue to double our efforts in strengthening our financial position as we are determined to keep contributing significantly to improving the lives of our priority sectors, especially small farmers and fishers,” Buenaventura said.