Landbank income jumps 36% to P10.4 B in 9 mos

MANILA, Philippines - State-run Land Bank of the Philippines posted a 36-percent increase in net income to P10.4 billion in the first nine months of 2013 on the back of higher income from investment and trading activities.

The income figure translates to a return on equity of 17.44 percent.

For the nine-month period, Landbank’s investment income reached P19 billion, up by P8 billion from its year-ago level primarily driven by active trading activities.

The bank’s deposits grew by P103.8 billion which helped sustain growth in loans which contributed to gross revenues.

Landbank president and CEO Gilda E. Pico said their earnings in the first three quarters exceeded the target for the period.

 â€œWe are well ahead of our P7.9-billion third-quarter target and are well-positioned for continued growth as we further beef up our core business segments,” Pico said.

Total investments grew to P258.4 billion as of end-September 2013 from P231.8 billion in the same period last year while the bank’s regular loan portfolio stood at P280 billion, a hefty growth from P241.9 billion in the same period last year.

Capital funds, meanwhile, inched up to P74.2 billion from P73 billion in September 2012.

Total assets grew 16 percent to P731.8 billion from P629.2 billion in September 2012 while total deposits reached P593.3 billion, a 21-percent hike from P489.5 billion last year.

Last month, Landbank successfully raised P5 billion from its offering of long-term negotiable certificates of deposit (LTNCDs), which carried a 3.125-percent coupon rate.

In line with the bank’s continuous thrust to expand loans to the priority sectors, Pico said Landbank is looking to issue more LTNCDs, following the oversubscription by P3 billion of its P5-billion issuance.

Meanwhile, the bank’s capital adequacy ratio (CAR) at 21.46 percent remained well above the regulatory minimum levels, indicative of the bank’s capability to withstand major risk scenarios.

Landbank is one of the four Philippine banks upgraded to investment-grade rating by Moody’s last month, following the credit rating agency’s upgrade of the Philippines’ sovereign rating.