LBP profit as of Sept. beats goal
Profits of state-run Land Bank of the Philippines grew more than expected at the end of September on the back of higher trading gains, the lender announced Monday.
In a statement, Land Bank likewise said its balance sheet was one of the strongest in the industry as its capital adequacy ratio reached 21.46 percent, more than double the minimum regulatory requirement and higher than the average for major banks.
“We are well ahead of our P7.9-billion third-quarter target and are well-positioned for continued growth as we further beef up our core business segments,” Land Bank president and CEO Gilda E. Pico said.
The company attributed its higher income for the nine-month period of P10.4 billion to the P8-billion growth in investment income, which reached P19 billion.
This was driven by active trading activities that resulted in revenues of P9.4 billion for the first three quarters.
The bank’s deposit base likewise grew by P103.8 billion, helping sustain growth in loans.
Total investments grew to P258.4 billion as of end-September 2013 from P231.8 billion of the same period last year while the bank’s regular loan portfolio stood at P280 billion, up from P241.9 billion in the same period last year.
Capital funds, meanwhile, inched up to P74.2 billion from P73 billion in September 2012.
Total assets grew by 16 percent to P731.8 billion from P629.2 billion in September 2012 while total deposits reached P593.3 billion—a 21-percent hike from P489.5 billion of the same period last year.
Last month, Land Bank successfully raised P5 billion from its offering of Long-Term Negotiable Certificates of Deposit (LTNCDs), which carried a 3.125-percent coupon rate.
Pico said the company wanted to issue more LTNCDs, at P3 billion or P5 billion increments, in the months to come to help support the growth of its loans to the “priority sectors.”
Meanwhile, the bank’s capital adequacy ratio (CAR) at 21.46 percent remained well above the regulatory minimum levels, “indicative of the bank’s capability to withstand major risk scenarios.” Paolo G. Montecillo
