LBP income up 24% to P6.2B as of end-July

Land Bank of the Philippines generated a net income of P6.2 billion as of July, growing by 24 percent from P5 billion in the same period last year.

LBP is thus confident that it would be able to exceed its net income target of P8.5 billion for the whole of 2011.

“Definitely, we [the bank] will exceed that,” said Landbank president Gilda Pico.

Ms. Pico said Landbank’s income growth in the first seven months was driven mainly by its lending activities, particularly to the agricultural sector and enterprises in the rural areas.

Pico said loans extended to small farmers and fishers in the seven months to July reached P16.6 billion, up by 33 percent from only P12.5 billion in the same period last year.

She said the bank was also generating income from its other businesses, such as remittance services.

The bank recently forged a partnership with Italian post office Poste Italiane to expand the coverage of its remittance service.

Under the partnership, Filipinos based in Italy may send their remittances to the Philippines through any of the 14,000 branches of Poste Italiane.

Once a remittance is sent, the money may be withdrawn by recipients here through Landbank, which has 900 automated teller machines all over the country.

The partnership is aimed at servicing Filipinos working in Milan, Rome and other key cities in Italy, where many Filipinos live and work.