MANILA, Philippines - State-owned Land Bank of the Philippines (Landbank) posted a net income of P5.15 billion in the first quarter of 2013, up 65 percent from P3.13 billion in the same period in 2012, a top bank official said.
Landbank president and CEO Gilda Pico attributed the substantial increase in profits to higher revenues during the period.
“Landbank’s strong performance in the first quarter of the year is driven by revenues from treasury activities which grew 149 percent to P9.80 billion from P3.94 billion,†Pico said.
“We also maintained our prudent management of operating costs and continued to strengthen other areas of profitability,†she added.
Landbank’s return on equity stood at 15.04 percent, while Basel II CAR at 19.65 percent remained higher than the regulatory standard of 10 percent.
Pico said the bank’s capital reached P91.26 billion, 30 percent higher than the previous year’s P70.10 billion.
Deposits grew significantly by 23 percent or P106 billion to P574.65 billion from P468.57 billion while total assets reached P737.45 billion, reflecting a 22 percent increase from P604.38 billion in 2012.
The Landbank official said the bank’s priority sectors include the small farmers and fisherfolk, micro, small and medium enterprises, and agri- and aqua- related projects of local government units and government-owned and controlled corporations.
The bank is present in 80 provinces with a nationwide network of 335 branches and 1,103 ATMs.
It also plays a significant role in major government programs such as the Conditional Cash Transfer, the Food Supply Chain Program, and the OFW Reintegration Program.
Last March, President Aquino signed RA 10374 which extends Landbank’s corporate life by another 50 years.
“The extension of the Landbank Charter and the bank’s consistently solid performance attests to its continuing relevance and capacity to expand support to the country’s agricultural sector and the countryside, as the government’s partner in its development thrusts,†Pico said.