Landbank Reports 141% Hike in Profits for First Quarter

Land Bank of the Philippines (Landbank) has reported its profits for the first quarter amounted to ₱13.2 billion, accounting for an increase of 141% year-on-year following its merger with United Coconut Planters Bank (UCPB) earlier on March 1. The government-owned bank also noted that the growth was driven by “higher interest income from loans and investments” as the economy continues to recover from the global pandemic.

The return-on-equity — a measure of financial performance — of Landbank also reached 14.3% at end of the first quarter, which is significantly higher than the average of 9.1% as of end-2021 for the domestic banking industry. “Landbank’s income expansion runs parallel with the country’s strong economic resurgence. We will build on this growth trajectory to continue assisting key development sectors and contribute to our collective recovery, to drive our broader thrust of serving the nation,” explained Cecilia Borromeo, president, and chief executive of Landbank.

Landbank’s “sound financial position furthered its capacity to provide financial and support services to the agriculture sector and other development industries” has enabled it to have more than ₱822 billion in outstanding loans to priority borrowers to date, with ₱236.9 billion being provided to farmers and fisherfolk.

Its asset base, likewise, rose by 16% to ₱2.79 trillion as of March compared to ₱2.41 trillion the year prior after its merger with UCPB which added ₱291.8-billion worth of assets. Landbank is now ranked second among the country’s biggest lenders in terms of assets. “Major asset accounts, including loans and investments, likewise increased in double-digits,” noted the government-owned bank.

Meanwhile, Landbank’s capital grew to ₱218.4 billion, accounting for a 12% increase, within the first quarter “mainly due to the record net income in 2021.” Over the past year, its net income dropped to ₱17.1 billion, a 7.4% decrease from ₱18.5 billion in 2019 due to “provisioning for probable losses which is significant at P9.3 billion.”

Source: Inquirer