Landbank posts net income of P2.15B in H1

State-owned Land Bank of the Philippines (Landbank) reported a net income of P2.15 billion in the first six months of this year, the highest-ever net income attained by the financial institution in one semester, its top official said yesterday.

Landbank president and chief executive officer Gilda Pico said the January to June figure is 30 percent higher than the P1.65-billion net income posted in the same period last year.

With the rosy income in the first semester of the year, the bank is confident of hitting its P4-billion net income goal for the year.

“Landbank is ahead of its first semester net income target of P1.95 billion which makes us confident to reach P4 billion by yearend. This will further strengthen our development initiatives in the countryside and expand our reach to farmers and fisherfolk who are Landbank’s mandated clients,” Pico said.

As of June 2007, Landbank’s assets reached P367.8 billion or 17 percent higher than the P315.7 billion posted in same period last year.

Data from the bank also showed that Landbank’s capital increased by 40 percent to P35.8 billion from P25.5 billion while deposits grew by 13 percent to P278.1 billion from P245.4 billion in June 2006. 

Its higher-than-expected net income allowed Landbank to remit P1 billion in cash dividends to the National Government, bringing the bank’s contributions to P16.5 billion since 1996.

Under Republic Act 7656 or the Dividends Law of 1994, government-owned and-controlled corporations and government financial institutions are required to remit half or 50 percent of the income earned in each fiscal year to the National Government. The remittance should be in the form of cash or in unencumbered or real estate properties with clean titles.

President Arroyo received the P1-billion check from Finance Secretary Gary B. Teves and Landbank president Pico in ceremonies in Malacañang which marked the bank’s 44th anniversary last Aug. 8.

Landbank has been beefing up its resources to enhance its lending facilities to its clients.

It has allocated P3 billion for lending to small and medium enterprises through a new credit facility, the so-called Countryside Loan Fund-Credit Support for the Environment, Agribusiness and Small and Medium Enterprises or CLF-CREAM program.

Through this initiative, Landbank aims to address the  medium to long-term financial requirements of borrowers in various projects.

Under the facility, a single-borrower may borrow up to P300 million for working capital or fixed assets requirements.

Landbank said the facility will prioritize the financing of agriculture and agri-related projects, food and agro-processing ventures, manufacturing activities, product distributions, service-oriented activities like warehouse, utilities and transportation, environmental protection such as renewable energy projects.