Landbank income up 36% in H1
Mary Grace Padin (The Philippine Star) - August 10, 2019 - 12:00am

MANILA, Philippines — State-run Land Bank of the Philippines said yesterday it booked a total net income of P10.58 billion in the first half, up by 35.82 percent from P7.79 billion in the same period last year, amid more aggressive lending activities.

In a statement, Landbank president and chief executive officer Cecilia Borromeo said the bank’s net income in the first semester also exceeded its P8.32 billion target for the period by 27.16 percent.

Return on equity for the six-month period was at 14.1 percent, while net interest margin stood at 3.53 percent, both above latest industry averages.

Borromeo said the growth in Landbank’s earnings could be attributed to the 60 percent jump in income from loans, which resulted from higher yield and the growth in the bank’s gross loan portfolio.

Its gross loan portfolio as of end-June grew by 12.74 percent to P855.32 billion from P758.68 billion in the same period last year, she said.

“We are well ahead of our second quarter target, and Landbank is well positioned for continued growth, with prudent operation and aggressive expansion of loan portfolio. Ensuring the bank’s financial viability remains a priority as the profit from our operations allows us to channel greater financial support to the agriculture sector, especially small farmers and fishers,” Borromeo said.

According to Borromeo, Landbank has remained the biggest lender to the agriculture sector, with gross loans amounting to P219.63 billion.

These include P42.31 billion in loans to small farmers (including agrarian reform beneficiaries), fishers, and their associations; and P177.32 billion to other players in the agri-business value chain.

“The bank is aggressively stepping up its efforts to make direct credit accessible to small farmers and fishers through focused implementation of its direct lending programs,” Borromeo said.

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