The Land Bank of the Philippines (LandBank) reported a net income of P5.068 billion as of April 2018, higher by 26 percent than the P4.038 billion registered in the same period last year, sustaining the growth momentum it posted in the first quarter.
In a report to Finance Secretary Carlos Dominguez III, LandBank president and CEO Alex Buenaventura said the bank’s net income as of April also exceeded the P5.042 billion target for that period by 1 percent or P26 million.
Gross revenues of P20.43 billion as of April registered a 30 percent increase over last year’s earnings of P15.77 billion for the same period.
Interest income on loans amounting to P10.553 billion, representing an increase of 30 percent or P2.421 billion compared to last year’s figure of P8.132 billion, accounted for the significant hike in LandBank’s net income.
The bank’s total loan portfolio as of April expanded by 37 percent or by P197 billion.
LandBank also posted a higher income from investments at P6.425 billion, up by P301 million or 5 percent more than last year’s P6.124 billion.
Interest income on government and private securities amounted to P1.302 billion, while gains from the sale, redemption or derecognition of non-trading financial assets was reported at P123 million. Dividends received from equity investments is lower by P196 million while income from financial assets held for trading decreased by P928 million.
Profits from foreign exchange transactions grew by P649 million or 136 percent as a result of the revaluation gain on the bank’s foreign-currency denominated assets.
“The Bank’s robust performance provides us the tools in fulfilling our goal of providing financial services to more borrowers in the countryside, particularly in the agricultural sector. We will continue to expand lending opportunities for small farmers, fishers and micro entrepreneurs to help make growth truly inclusive for all Filipinos,” said Buenaventura in his report to Dominguez.
LandBank remains the biggest credit provider to small farmers, fishers and micro, small and medium enterprises among government financial institutions.
In the first quarter of 2018, LandBank reported a net income of P4.26 billion, which is 52 percent higher than the P2.81 billion registered in the same period last year. This was also 13 percent higher than the Bank’s first quarter target of P3.78 billion.
The Bank’s total assets grew by 19 percent in the first quarter to P1.63 trillion from P1.38 trillion in the same period last year.
Total deposits likewise expanded significantly by 19 percent to P1.44 trillion from P1.22 trillion. Total capital stood at P108.37 billion, up by 22 percent from P88.63 billion as of end-March 2017.
In 2017, LandBank’s loan releases to over 800,000 farmers and fishers across the country amounted to P62.5 billion.