Land Bank president and CEO Gilda E. Pico. INQUIRER FILE PHOTO
MANILA, Philippines—The Land Bank of the Philippines is on track to meet its full-year target net income of P12 billion, despite an 11-percent decline for the first nine months of the year. The Bank’s third-quarter net income stood at P9.3 billion against P10.4 billion of the same period last year.
Land Bank president and CEO Gilda E. Pico attributed the decrease to more challenging business conditions this year as against exceptional trading gains recorded in 2013. “We managed to surpass the year-to-date target net revenue by 3 percent and we remain confident about meeting our full-year target,” Pico said, adding that the decline in the third-quarter revenue is significantly narrower than the 29 percent drop in the first half of the year.
The nine-month net income translated to a return on equity of 14.5 percent.
Meanwhile, the Bank’s total assets grew by a hefty 24 percent to P910.9 billion from P731.8 billion in the same period last year on the back of steady growth in loans and investments.
As of the third quarter, Land Bank’s gross loan portfolio grew 22.7 percent to P362.3 billion from P295.3 billion, while investments grew 6 percent to P273.9 billion from P258.3 billion.
Total deposits likewise registered substantial growth to P781.8 billion, 32 percent higher than the P593.3 billion in September last year. Total capital stood at P72.1 billion, lower by 3 percent from P74.2 billion.
Land Bank is the only bank present in all provinces of the country with the recent opening of its branch in Dinagat island.
This brings to 346 the Bank’s total number of branches in the country, complemented by 1,315 ATMs. It remains the biggest credit provider to small farmers and fishers, local government units, and the biggest lender to microenterprises and SMEs among government financial institutions.
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