Landbank net income up 9%

MANILA, Philippines - State-run Land Bank of the Philippines posted a nine percent increase in net income in 2013 to P11.7 billion from P10.7 billion in 2012, the bank’s top official said.

Landbank president and CEO Gilda E. Pico said last year’s profit translates to a return on equity of 15.9 percent and exceeds the bank’s yearend target of P10.5 billion by 12 percent.

Net interest margin also remained above industry average at 3.49 percent.

Pico attributed the modest income growth to steady earnings from  investment and loans.

Revenues reached P40.2 billion in 2013, reflecting a 16 percent growth from P34.8 billion in 2012.

The bank’s regular loan portfolio registered an 11 percent increase to P303.9 billion from P273.4 billion. Investments income grew 10 percent to P20.4 billion.

Total assets also grew a hefty 22 percent to P841.8 billion from P689.1 billion in 2012 while capital funds stood at P72.3 billion.

Total deposits, on the other hand, expanded 30 percent to P705.9 billion from P543.8 billion.  

The bank’s capital adequacy ratio (CAR) at 20.10 percent remained well above the regulatory minimum level.

Coverage ratios for gross loans stood at 3.68 percent, past due loans at 154.28 percent, and non-performing loans at 159.34 percent likewise remain higher than the latest industry averages.

“Landbank wrapped up another fruitful year with a solid fourth quarter and we are confident about sustained growth this year as we focus on further strengthening core business segments,” Pico said.