Landbank income flat in 9 months

MANILA, Philippines - State-run Land Bank of the Philippines booked a flat net income for the first nine months, but it remained on track to meeting its target this year under a new management.

In a statement, the government lender reported a net income of P10.3 billion as of September, nearly steady from P10.27 billion in the same period a year ago.

Compared to its target however, Landbank beat its P10.13-billion goal for the nine-month period. For the entire 2016, the goal was pegged at P13.5 billion.

Alex Buenaventura, the bank’s new president and chief executive officer who took over Nov. 11, said the latest figures showed Landbank is in a “good position” to expand its services to farmers and fishers.

Lending to micro, small and medium enterprises would likewise be improved, he said.

“This will be our priority moving forward, as we strive to keep the balance of maintaining our financial viability and fulfilling our development mandate,” Buenaventura said.

Landbank’s latest performance included the first three months of the Duterte administration, which took over June 30.

Buenaventura assumed the post from officer-in-charge Andres Sarmiento who was appointed after the lender’s board removed Gilda Pico after 10 years as president.

According to the bank, total assets grew 17 percent to P1.3 trillion from P1.1 trillion during the January to September period “buoyed by growth in loans and investments.”

Broken down, total investments surged 55 percent to P471.9 billion, while gross loans went up nine percent to P481.9 billion.

Data on revenues and expenditures were not provided.

Meanwhile, deposits rose 18 percent year-on-year to breach the trillion-peso mark at P1.2 trillion from P991.3 billion. Capital was 18-percent higher at P91.1 billion.

Upon taking over, the Duterte government scrapped a plan to merge Landbank with another state lender, Development Bank of the Philippines (DBP), with the former as surviving entity.

The plan would have created the country’s second biggest bank in asset terms, but Finance Secretary and Landbank chair Carlos Dominguez said Landbank and DBP have different mandates.

As of September, Landbank has 365 branches, 27 other banking offices and 1,607 automated teller machines nationwide.