Landbank earns 4% more in 2017

MANILA, Philippines — State-run Land Bank of the Philippines recorded a higher net income of P14.05 billion in 2017, driven by the growth in the bank’s revenue from loans and investment.

In a statement, Landbank president and chief executive officer Alex Buenaventura said the bank’s net income amounted to P14.05 billion in 2017, four percent higher than the P13.58 billion reported in 2016.

Buenaventura said the core revenue of Landbank, including loans and investments, grew at double-digit rates during the year.

He said the bank’s income from loans rose 12 percent to P26.8 billion from P23.9 billion in 2016 as its gross loan portfolio reached P674.3 billion in 2017.

Income from investments, meanwhile, grew 28 percent to P21.17 billion in 2017 from P16.49 billion the previous year. Landbank’s investment portfolio amounted to P580.65 billion, 25 percent higher than the 2016 level.

The Landbank official said return on equity grew 14.8 percent, while the bank’s total capital expanded 23 percent to P104.59 billion.

Buenaventura said deposits with the Landbank also rose significantly by 15 percent to P1.42 trillion as bank deposits from both government and private sector grew. The bank attributed this to the increase in branches and automated teller machines, and the growth in internet banking and mobile banking subscribers.

According to Buenaventura, Landbank expects to sustain its growth path this year.

“With our solid performance in 2017 further reinforcing the bank’s foundation, we are confident with sustaining growth in 2018. Our core objective is to continuously grow the net income in order to expand support to our priority sectors, especially the farmers and fishers, cooperatives, microenterprises and SMEs,” he said.

Landbank is the largest provider of loans to small farmers and fishers, cooperatives and local government units in the country.

Recently, the bank took over the Postal Savings Bank and converted it to the Overseas Filipino Bank (OFB), which is intended to cater to the financial needs of Filipinos based abroad.

LandBank also expressed its intent to purchase a majority stake in the Philippine Dealing System Holdings Corp. (PDSHC). The bank has started to conduct its due diligence in relation to the proposed acquisition.

Buenaventura earlier said Landbank is also seeking the Securities and Exchange Commission’s approval to exempt the bank from the 20 percent cap on the ownership of exchanges imposed under the law.