Land Bank profit jumps by 65%
State-owned Land Bank of the Philippines posted a 65-percent increase in its net income in the first quarter to P5.15 billion from P3.13 billion in the same period in 2012. “Land Bank’s strong performance in the first quarter of the year is driven by revenues from treasury activities. We also maintained our prudent management of operating costs and continued to strengthen other areas of profitability,” Land Bank president Gild Pico said.
Income from treasury operations grew year-on-year by 149 percent to P9.8 billion from P3.94 billion.
Banks in the country have been enjoying higher earnings from treasury operations due to the favorable performance of the equities market.
The bank reported that its return on equity in the first quarter stood at 15.04 percent.
Benefiting from the growing liquidity in the economy, Land Bank saw its deposit base grow by 23 percent to P574.65 billion as of the end of March, from P468.57 billion a year ago.
Its total assets reached P737.45 billion, up by 22 percent from P604.38 billion.
Pico said the rise in deposits and resources allowed Land Bank to extend more credit to priority sectors, led by agriculture.
“Alongside fortifying its universal banking operations, Land Bank remains the biggest lender to the agricultural sector. The bank’s priority sectors include the small farmers and fisherfolk, micro, small and medium enterprises, agri- and aqua- related projects of local government units and government-owned and controlled corporations,” Pico said.
The bank’s capital hit P91.26 billion, up by 30 percent from P70.1 billion a year ago. Its capital adequacy ratio (CAR) stood at 19.65 percent, higher than the 10 percent required by the Bangko Sentral ng Pilipinas. Michelle V. Remo
