Landbank income doubles to P13 billion

MANILA, Philippines — State-run Land Bank of the Philippines doubled its net income in the first quarter to more than P13 billion, brought about by the one-time gains it secured from its merger with another bank.

Landbank president and CEO Cecilia Borromeo said the bank’s profit more than doubled to P13.2 billion in the first quarter from P5.43 billion in  the same period last year.

She said the bank’s  income jumped at such a rate due to the increase in interest gains from loans and investments attributed to improving sentiment on consumer and business activities.

Likewise, Borromeo said Landbank cashed in a one-time gain from its merger with the United Coconut Planters Bank (UCPB). President Duterte last year approved the merger between Landbank and UCPB as part of efforts to expand financial services for agricultural workers.

In terms of assets, Landbank grew its base by 16 percent to P2.79 trillion in the first quarter from P2.41 trillion a year ago, as the bank took in an additional P291.83 billion from UCPB as a result of the buyout.

As such, the state-owned bank solidified its position as the second largest bank in the country in terms of asset base.

Further, Landbank’s capital went up by 12 percent to P218.36 billion from P194.59 billion on a yearly comparison. Borromeo reported that its asset accounts, including in loans and investments, also posted double-digit growths.

“Landbank’s income expansion runs parallel with the country’s strong economic resurgence. We will build on this growth trajectory to continue assisting key development sectors and contribute to our collective recovery, to drive our broader thrust of serving the nation,” Borromeo said.