Landbank profit rose 12% in Jan.-Sept.

Land Bank of the Philippines said its net income reached P7.2 billion in the nine months to September, up 12 percent from P6.4 billion in the same period last year.

Gilda E. Pico, Landbank president and chief executive, said in a statement the state bank “continued to post higher profits” as it strengthened its financial position and expand its activities to other profitable areas.

Landbank data show that as of end-September, its total assets grew 12 percent to P591 billion year on year from P527 billion.

At the same time, deposits grew by 15 percent to P460 billion from P399 billion.

“Private sector and government deposits increased as Landbank undertook various initiatives to improve customer service,” Pico said.

Also, Landbank’s capital grew by a tenth to P66 billion from P60 billion, boosting its capital adequacy ratio (CAR) further to 18.4 percent.

Banks in the Philippines are required to maintain a CAR, a measure of a capital compared to the risk exposure, of at least 10 percent.

Lankbank’s “ability to perform against major risk scenarios is responsible for its strong capital ratios,” Pico said. “The healthy capital ratios reflect the bank’s capacity for loan portfolio expansion as the economic recovery further gains momentum.”

Last month, Landbank said it had lent farmers and agricultural companies a total of P4.8 billion for food production since its food supply chain program got under way in October 2010.

The bank said it had financed 75 projects involving 75 anchor firms and 288 cooperatives, farmer organizations and nongovernment organizations with whom it had signed production, technical and marketing agreements.

The projects include  integrated corn production and hog fattening; oil palm production and processing; fruits and vegetable production and processing; rice and corn production, processing and trading; banana production and processing; fish production and processing; onion production, cold storage and marketing; and sugarcane production and milling.