Landbank books P20.9-B net income in H1, exceeds target by 19%

State-run Landbank of the Philippines saw its first half 2023 bottom line exceed target by double digits on the back of higher earnings in loans and investments.

In a statement, Landbank said it booked a net income of P20.9 billion during the January to June period, surpassing its first semester target of P17.6 billion by 19% or P3.3 billion.

Year-on-year, the state-owned lender saw a 2.7% increase in profits from the P20.3-billion net income seen in the same period in 2022.

Landbank’s first-half earnings also represent nearly 60% of its full-year target of P35 billion.

"We are very much on track in meeting our financial targets for the year, as income from loans and investments continues to expand. Landbank is in a prime position to sustain our intensified support to the agriculture sector and other key industries," said Landbank president and CEO Lynette Ortiz.

The bank said its net income growth in the first semester was attributed to earnings from loans and investments, which increased by 49.8% and 43.5%, respectively.

Landbank also recorded total assets reaching P3 trillion, up 7.9% from P2.8 trillion in the same period a year ago.

The increase in assets was driven by deposits amounting to P2.7 trillion, which expanded by 9.2% year-on-year, it said.

Landbank is being planned to be merged with the Development Bank of the Philippines to create the largest banking institution in the Philippines with an estimated asset size of about P4.18 trillion, a deposit base amounting to P3.59 trillion, and a capital of P288 billion based on figures as of December 31, 2022.

The merger is expected to generate savings estimated at P5.3 billion a year or at least P20 billion in the next four years. — VBL, GMA Integrated News