Landbank profit up 10% to P2.77B in first quarter By Iris C. Gonzales (The Philippine Star) Updated May 10, 2011 12:00 AM Comments (0)
MANILA, Philippines - Land Bank of the Philippines, a
government financial institution, reported yesterday a net income P2.77
billion in the first quarter of this year or 10 percent higher than the
P2.5 billion registered in the same period last year.
Landbank president and chief executive officer Gilda Pico attributed
the strong first quarter performance to higher income from loans and
investments and the bank’s efforts to cut operating costs.
With a higher net income, Landbank’s major financial ratios
strengthened further. Return on equity (ROE) in the first quarter
reached 19.2 percent while the bank’s capital adequacy ratio, or the
principal measure of a bank’s capital strength, improved to 17.7
percent. This is higher than the regulatory requirement of 10 percent.
Data from the bank showed that outstanding loans expanded 14 percent
to P241.4 billion as of end-March from the P212.4 billion recorded the
Similarly, the bank’s investments portfolio increased slightly by two percent to P209.8 billion.
Deposits, meanwhile, grew substantially by 18 percent to P480.9 billion or P73.1 billion higher than the previous year.
Assets likewise expanded 16 percent to P604.1 billion from P521.5
billion last year, while capital also grew 16 percent to P58 billion
from P49.9 billion.
Pico said the bank’s higher income would enable it to extend more loans to farmers and to the fisheries sector.
“The sustained increase in net income enables Landbank to
continue providing credit support to priority sectors particularly the
farmers and fisherfolk cooperatives, micro enterprises, and SMEs,” Pico
Landbank provides credit assistance programs to small farmers and
fisherfolk, SMEs and microenterprise and other related projects.
As of last year, Landbank has a network of 325 branches and 885 automated teller machines.
Its priority sectors for lending are mostly agricultural sectors such as farming and fisheries.
---This is not possible without the rank and file's role as the frontliners despite the odds and neglected concerns.