The Land Bank of the Philippines reported 94% growth in net profit in the first half, mainly due to higher lending activity and cost-cutting measures during the period.
LandBank said its net income jumped to 20.3 billion pesos in the first six months of the year, from 10.3 billion pesos in the comparable period in 2021, with double-digit growth in assets and deposits.
“LandBank’s substantial net income expansion is attributed to its careful management of the cost of funds as well as sustained interest income from loans and investments,” he said in an emailed statement. .
It has not yet provided its financial results report for the second half of the year.
The lender ended the first half with 2.8 trillion pesos in assets, translating to growth of 11.8% over last year.
This made it the second largest bank in the Philippines, with deposits growing 10.1% year-on-year to 2.5 trillion pesos, including 1.5 trillion pesos in government deposits.
Annual capital growth was 1.9% to reach 206.5 billion pesos, driven by the 93.5% increase in net income. Return on equity was 15.43%, return on assets 1.19% and net interest margin 2.92%.
“LandBank’s strong financial performance will continue to drive its intensified assistance to key industries, particularly the agricultural sector, in support of the country’s continued recovery,” said President and CEO Cecilia Borromeo.
“We will also build on this growth momentum to continue our efforts to rebuild local communities, advance financial inclusion and support the national government’s development agenda,” she added.
The lender’s mandate is to promote rural development while remaining financially viable. It implements the Comprehensive Land Reform Program (CARP), provides assistance to small farmers and fishers, and serves as the official depository of public funds. —LBG, GMA News
