State-run Land Bank of the Philippines, the fourth-largest lender in terms of assets, said net income rose 5.4 percent in the first half to P7.8 billion from P7.4 billion a year ago, driven by the sustained growth of its lending business.
LandBank president and chief executive Alex Buenaventura said revenues from loans climbed 30 percent in January to June from a year earlier. Data showed the bank’s gross loan portfolio went up 27 percent to P758.7 billion from P597.1 billion.
“LandBank remains among the most profitable banks in the country and we are confident about continued growth for the next half of the year. We work hard to maintain the bank’s sound financial position as the profits from our commercial banking operations allow us to further drive support to our priority sectors, especially farmers and fishers,” Buenaventura said.
LandBank also reported a return on equity of 13.4 percent in the first half, above the latest industry average and surpassed the ROE reported by the country’s four other top banks.
Net interest margin was also above the industry average at 3.32 percent.
It also remained the biggest government bank in the country, with total assets of P1.7 trillion as of June 30, a 14-percent increase from P1.48 trillion in the same period last year.
Deposits rose 15 percent to P1.5 trillion from P1.3 trillion in June 2017, while capital stood at P117.4 billion.
LandBank on Aug. 8 marked its 55th anniversary of promoting growth in the countryside through inclusive banking. It is the biggest lender to the agricultural sector, especially small farmers and fishers, cooperatives, microenterprises, and SMEs.
The bank during its anniversary celebration recognized its outstanding clients and partners at the Gawad sa Pinakatanging Kooperatiba, Gawad SME, Gawad Kaagapay and Gawad Countryside Financial Institutions awarding ceremonies.
The bank will also hold a series of financial inclusion caravans for the rest of the year, as part of its campaign to promote greater financial inclusion among unbanked and unserved communities, especially in fourth- and fifth-class municipalities.
This follows the successful two-year run in 2016 and 2017, which reached 17 third- to sixth-class municipalities and helped more than 7,000 unbanked and underserved Filipinos learn more about formal banking and other financial services.
