State-owned Land Bank of the Philippines booked a P10.8-billion net income in the first quarter of 2023, on the back of higher interest income and lower operating costs.
In a statement, Landbank said its three-month bottomline was higher by P2 billion than its target for the period and already accounts for 30.8% of the lender’s P35-billion net income goal for the entire year.
Year-on-year, the bank’s earnings were lower by 18% than the P13.2 billion booked in January to March 2022, “which was propelled by non-recurring miscellaneous income.”
Landbank’s interest income from loans and investments rose 54% to P20.9 billion, despite the higher cost of funds due to volume of deposits and rising interest rates.
On the other hand, operating expenses declined by P797 million.
“As we maximize yields from earning assets while being prudent with our expenses, Landbank’s robust financial position allows us to advance the national government’s development agenda. We are fully capable to continue extending intensified support to the agriculture sector and other key economic industries, while driving sustainable growth in local communities,” said Landbank president and CEO Cecilia Borromeo.
Landbank, likewise, grew its asset base by 11.7% to P3.1 trillion as deposits expanded to P2.8 trillion.
The government sector remains to be the core depositor of the bank, contributing 71% of its total deposits, the bank said.—AOL, GMA Integrated News