Manila, Philippines - The Land Bank of the Philippines (Landbank), reported a first quarter net income of P3.1 billion, up 13 percent from the P2.8-billion net income recorded in the first quarter of 2011 and 32 percent above the bank’s income target for the period.
Landbank president and chief executive officer Gilda Pico said the increase in income came from higher revenues from loans and investments.
“The consistent upward trend in our profitability is principally the result of increased revenues in loans and investments,” Pico said.
Furthermore, Pico said the results reflect the bank’s institutional focus as well as aggressive marketing of its credit facilities to priority sectors, as well as improvements in delivery channels and process efficiencies.
As proof of improved marketing efforts, Landbank reported a growth in its net loan portfolio to P245.5 billion from P241.4 billion.
Similarly, investments increased by nine percent to P228.1 billion from P209.8 billion.
Landbank’s capital also increased and remained on the uptrend, rising substantially by 21 percent to P70.1 billion in the first quarter from P58 billion a year ago.
On the other hand, deposits slightly decreased to P468.6 billion in the first quarter from P480.9 billion recorded in the same period last year.
Meanwhile, the bank’s capital adequacy ratio – an indicator of its strength – improved to 20.5 percent in March 2012 from 17.7 percent of the same period in 2011.
Return on equity was at a high 17.4 percent, data from the bank also showed.
“The strong capital ratios are indicative of the Landbank’s sound financial position and reflect the bank’s capacity to aggressively expand its loan portfolio to farmers and fisherfolk cooperatives, microenterprises and SMEs, agribusiness, local government units and rural banks,” Pico said.