Land Bank remits P5B to state coffers

Land Bank of the Philippines reported Monday that it earned P9 billion in net profit last year, P5 billion of which had been remitted to state coffers to help fund various economic stimulus projects of the government.

The dividends from Land Bank’s 2011 income was the highest ever remitted by a state firm, it said.

In a statement, Land Bank said its income last year was up 11 percent from the previous year’s P8.1 billion. It was driven largely by an increase in lending activities and efforts to improve expenditure management.

“We made solid progress in 2011, and we are looking forward to continued growth in 2012,” Land Bank president Gilda Pico said in the statement.

The state firm’s total resources rose by 13 percent year on year to P638.9 billion.

According to Ms. Pico, the bank intends to lend more in 2012, especially to priority sectors, such as fishers, farmers and owners of small and medium enterprises. The bank will also continue to fulfill its developmental mandate by accommodating borrowers from the countryside.

In 2011, Land Bank reported that there was a stark increase in deposits, growing by 17 percent to hit P507.3 billion.

The bank also cited an improvement in its ability to absorb credit defaults and other types of risks when its capital resources expanded by 13 percent to P71.6 billion.

As a result, the bank now enjoys a capital adequacy ratio of 16.47 percent, higher than the minimum 10 percent required by the Bangko Sentral ng Pilipinas.

Land Bank said the dividends it remitted to the government should help in funding development projects without compromising efforts to reduce the budget deficit.

The government incurred a budget deficit of P96.25 billion in the first 11 months of 2011, much lower than the P267 billion registered in the same period the previous year.

The government wants to further reduce its deficit as it aims for an investment-grade credit rating for the country within a year or two.—Michelle V. Remo