Landbank profit up 19% to P908M in January-March

Land Bank of the Philippines (LBP) posted a net income of P908 million in the first three months of 2006, 19 percent better than the P765 million profit in the same period last year.

Total assets stood at P308.6 billion, nine percent higher than the P283.1 billion level in the same period last year. Capital likewise grew by 25 percent from P21.9 billion to P27.3 billion as of end-March this year.

Deposits grew to P236 billion from last year’s P215 billion while loans expanded to P146 billion from P135 billion.

The state-run financial institution ranked fourth in the commercial banking industry in terms of assets and capital. In terms of deposits and loans, it ranked third and fourth, respectively.

Meanwhile, its non-performing loan (NPL) ratio improved to 6.5 percent as of March 2006 from 7.2 percent last year. "This is better than the banking industry average of 8.3 percent," LBP acting president and chief executive officer Gilda E. Pico reported.

NPLs grew from P11.5 billion to P11.8 billion in March. Real and other properties acquired (ROPAs), on the other hand, went down from last year’s P16.4 billion to P15.9 billion.

Pico said Landbank will dispose of between P2 billion to P3 billion worth of non-performing assets (NPAs) by the end of the year following the extension of the Special Purpose Vehicle law.

"The bank will continue with its aggressive NPA disposal where the proceeds of the sale will be used to meet the increasing demand for loans by the small farmers and fisherfolk, small and medium enterprises (SMEs) and local government units (LGUs).

Pico added that they remain optimistic the bank will hit its full year 2006 net income target of P3.3 billion. "This is part of our commitment to further improve our financial strength to enable us to finance our ongoing efforts to promote countryside development and generate employment."