The first-half net income of state-run Land Bank of the Philippines rose by over a third to P10.58 billion and exceeded its six-month goal on the back of a surge in loan income.
In a statement, Landbank said its end-June bottom line climbed 36 percent from P7.79 billion a year ago. It also surpassed its P8.32-billion goal for the first six months by 27 percent.
Landbank attributed the jump in profit to a 60-percent increase in income from loans mainly coming from the 13-percent year-on-year increase in its gross loan portfolio to P855.32 billion coupled with a higher yield.
Also, return on equity for the six-month period was at 14.1 percent while net interest margin stood at 3.53 percent, both above industry averages, it said.
At end-June, Landbank increased its assets by 7 percent to P1.81 trillion, posted a 6-percent hike in deposits to P1.59 trillion, and had a 21-percent bigger capital worth P141.86 billion.
“We are well ahead of our second-quarter target, and Landbank is well positioned for continued growth, with prudent operation and aggressive expansion of loan portfolio. Ensuring the bank’s financial viability remains a priority as the profit from our operations allows us to channel greater financial support to the agriculture sector, especially small farmers and fishers,” president and chief executive Cecilia C. Borromeo said.
“Alongside fortifying its universal banking operations, Landbank remains the biggest lender to agriculture especially to small farmers and fishers,” she said.
As of June 2019, its gross loans to agriculture amounted to P219.63 billion.