Landbank remits P6-B cash dividend to NG

MANILA, Philippines - Land Bank of the Philippines has remitted P6 billion in cash dividends to the state coffers, the highest among government-owned and controlled corporations (GOCCs).

The cash dividend represents 51 percent of Landbank’s total earnings in 2013, which grew nine percent to P11.7 billion from its 2012 net income of P10.7 billion.

 â€œ2013 was another year of positive growth for Landbank and we are pleased to consistently be able to contribute to the government’s revenue generation efforts vital to the country’s continued economic development and inclusive growth,” Landbank president and CEO Gilda E. Pico said.

Under the Dividends Law of 1993, GOCCs and government financial institutions GFIs are required to remit to the National Government at least 50 percent of their annual net earnings. The dividend should be in the form of cash, stocks or property.

For the past five years, Landbank has been consistently remitting substantial cash dividends to the government. To date, its total cash dividends amount to P23.9 billion. 

Aside from the record-high cash dividends, Landbank also has the highest recorded share of loans to priority sectors against the total loan portfolio, a five percent increase from the average 77 percent in the past three years.

The amount is 20 percent higher than the P209.1 billion in loans extended as of the same period last year.

 â€œThe steady rise in our loan portfolio reflects the bank’s wider credit outreach and aggressive effort to align our credit support with the National Government’s thrust towards inclusive growth,” Pico said.

The bank’s priority sectors comprise of small farmers/agrarian reform beneficiaries and fishers (SFFs) and their associations, microenterprises and SMEs, agri- and aqua-businesses, agri-aqua related projects of LGUs and GOCCs, communications, transportation, housing, education, health care, environment-related projects, tourism, and utilities.

Outstanding loans to small farmers and fishers increased nine percent to P30.7 billion from P28.1 billion last year.

Meanwhile, loan releases to these sectors from January to March reached P11.4 billion, 47 percent higher than the P7.7 billion released in the same period last year. These loans were channeled through 508 farmer and fisher cooperatives, 114 countryside financial institutions and 123 irrigators’ associations, benefiting 163,482 SFFs.

Outstanding loans to micro-enterprises and SMEs, in turn, grew 31 percent to P43.4 billion from P32.8 billion last year. Of this amount, P6.1 billion were lent to microenterprises and P36.9 billion to SMEs. Outstanding loans to LGUs reached P43.4 billion.