LandBank net income up 94% in first half

The Land Bank of the Philippines saw a 94% growth in its first-half net income, driven mainly by higher lending activity and cost-saving measures during the period.

LandBank said its net income jumped to P20.3 billion in the first six months of the year from P10.3 billion within the comparable period in 2021, with double-digit growth in assets and deposits.

“LandBank’s substantial expansion in net income is attributed to its prudent management of the cost of funds as well as sustained interest income from loans and investments,” it said in an emailed statement.

It has yet to provide its financial earnings report for the second half of the year.

The lender ended the first half with P2.8-trillion worth of assets, translating to an 11.8% growth from the past year.

This made it the second-largest bank in the Philippines, as deposits increased by 10.1% year-on-year to P2.5 trillion, including P1.5 trillion in government deposits.

Capital annual growth stood at 1.9% to P206.5 billion, driven by the 93.5% increase in net income. Return on equity was 15.43%, return on assets at 1.19%, and net interest margin at 2.92%.

“LandBank’s robust financial performance will continue to drive its intensified assistance to key industries, especially the agriculture sector, in support of the country’s continuing recovery,” President and Chief Executive Officer Cecilia Borromeo said.

“We will also build on this growth momentum to further our efforts to rebuild local communities, advance financial inclusion, and support the National Government’s development agenda,” she added.

The lender is mandated to promote countryside development while remaining financially viable. It implements the comprehensive agrarian reform program (CARP), provides assistance to small farmers and fisherfolk, and serves as an official depository of government funds. —LBG, GMA News