LandBank net income exceeds target, assets expand to P1T

Land Bank president and CEO Gilda E. Pico. INQUIRER FILE PHOTO

MANILA, Philippines—State-run Land Bank of the Philippines said its assets grew to more than P1 trillion, as profits topped the management’s target for the year.

In a statement, Landbank reported a rebound in trading income in the final quarter of the year, complementing the growth in core lending operations.

At the end of 2014, the bank had a net income of P12.1 billion, up from 11.7 billion in 2013. This exceeds the bank’s yearend target and translates to a return on equity of 16.4 percent, which was higher than the industry average.

“We finished 2014 strong as the industry saw a rebound in treasury earnings in the fourth quarter while we also beefed up core lending segments and strengthened non-traditional businesses,” Landbank president and CEO Gilda E. Pico said.

Last year’s main milestone for the bank was the growth in its asset base, which rose by a quarter to P1.05 trillion. This makes it the fourth biggest bank in the country after BDO Unibank, Metropolitan Bank & Trust Co., and Bank of the Philippine Islands with more than a trillion pesos in assets.

Landbank is the country’s biggest credit provider to small farmers and fishers and local government units. It also is the biggest lender to small businesses among government financial institutions.

It is the only bank present in all of the country’s 81 provinces, with its nationwide network of 351 branches and 1,338 ATMs as of Dec. 31, 2014.

The bank’s net loan portfolio grew by 47 percent to P449 billion. A 32-percent expansion in investments from to P317.2 billion was also recorded in 2014.

Total deposits grew by 30 percent to P914.2 billion, while total capital grew by 4 percent to P75.2 billion.

At the end of the year, Landbank said its capital base remained robust. It had a capital adequacy ratio of 14.5 percent, higher than the regulatory minimum of 10 percent. Paolo G. Montecillo