LANDBANK income surges 94% to P20.3-B in H1 2022

August 3, 2022

The Land Bank of the Philippines (LANDBANK) recorded a net income growth of 93.5% to P20.3 billion in the first half of 2022 from P10.3 billion a year ago, alongside doubledigit increases 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.

“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. 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,” said LANDBANK President and CEO Cecilia C. Borromeo.

LANDBANK’s total assets in the first half of the year grew by 11.8% to P2.8 trillion, further solidifying its ranking as the second-largest bank in the country. This was propelled by
deposits amounting to P2.5 trillion, up 10.1% year-on-year.

The government sector continues to account for the bulk of LANDBANK’s total deposits at 62% or P1.5 trillion, while the private sector comprised the remaining 38% share amounting to P930 billion.

LANDBANK posted modest capital growth year-on-year at 1.9% to P206.5 billion, primarily due to the 93.5% surge in net income for the six-month period ended 30 June 2022.

The Bank’s financial ratios remain at healthy levels, with return on equity at 15.43%, return on assets at 1.19%, and net interest margin at 2.92%.

Through the years, LANDBANK has grown into one of the leading universal banks in the country, while remaining faithful to its social mandate to promote inclusive and sustainable development.

On 8 August 2022, the state-run Bank will mark its 59th anniversary, representing almost six decades of service to the nation.

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LANDBANK, Bongabong LGU lead groundbreaking of Agri-Hub

Bongabong Municipal Mayor Elegio A. Malaluan (5th from left) and Vice Mayor Richard S. Candelario (4th from left), together with LANDBANK representatives, lead the groundbreaking ceremony at the LGU municipal compound on 6 September 2022. The activity was witnessed by LGU officials and several local businessmen from the Municipality.   BONGABONG, Oriental Mindoro – To better serve the requirements of farmers and fishers, a Land Bank of the Philippines (LANDBANK) Agri-Hub will soon rise at the compound of the Municipal Government of Bongabong. Bongabong Mayor Elegio A. Malauan, together with LANDBANK Oriental Mindoro Lending Center Head, Assistant Vice President Edwin Roel Ramos; Calapan San Vicente Branch Head, Department Manager Ferdinand E. Abas; and Pinamalayan Branch Head Lizza Mae D. Camposano, led the groundbreaking ceremony on 6 September 2022. Mayor Malauan expressed his gratitude to LANDBANK, as the new touchpoint in the locality will spur local economic growth and development—which are priorities under his administration. “The establishment of this Agri-Hub is a testament to our continued commitment to serve key players in the agribusiness value chain. We hope to generate more economic opportunities and activities in the Municipality and nearby areas,” LANDBANK President and CEO Cecilia C. Borromeo said. The construction of the LANDBANK Bongabong Agri-Hub is set to commence within the month and expected to be inaugurated in late December 2022, in addition to the Bank’s 10 existing Agri-Hubs nationwide. The Bongabong Agri-Hub will provide accessible financial services mainly to the 12,233 farmers and fishers in the Municipality, to complement the nearest LANDBANK Lending Center in Calapan City. The Agri-Hub will also deliver banking services to public and private clients of the Bank, including 5,360 beneficiaries of National Government’s Conditional and Unconditional Cash Transfer (CCT/UCT) Programs in the Municipality.  The LANDBANK touchpoint will be equipped with various digital banking platforms, including the Digital Onboarding System (DOBS), which simplifies the account opening process for new clients to only 10-15 minutes.


LANDBANK launches convenient mobile app for commuters

In line with the modernization of the country’s transport sector, the Land Bank of the Philippines (LANDBANK) is now offering a mobile transit app for cashless and contactless payment in public utility vehicles (PUVs) equipped with the Automated Fare Collection System (AFCS) EMV solution.  Through the LANDBANK mCommuter app, commuters can conveniently pay for transportation fares in AFCS-enabled vehicles by scanning the app-generated Quick Response (QR) Code, or by simply tapping their smartphones capable of supporting Near-Field Communication (NFC) technology on payment terminals.  “The LANDBANK mCommuter app supports the government’s transport modernization agenda, geared towards enhancing the daily travel experience of commuters. This is part of our continued efforts to leverage digital technology to serve commuter needs,” said LANDBANK President and CEO Cecilia C. Borromeo.  To register and access the features of the mCommuter app, users must be Full Wallet Accountholders of LANDBANKPay—the Bank’s all-in-one mobile wallet.  Once registered in mCommuter, fares will be automatically debited from the user’s LANDBANKPay account. Users may also link their LANDBANK EMV contactless prepaid and credit cards to the app to monitor their transit payment transactions and passenger journey.  Other mCommuter features scheduled for future roll-out include advance booking of tickets and discounted fares in PUV units.  Starting 13 September 2022, the mCommuter app is free to download in the Google Play Store, and soon in the Apple App Store.  LANDBANK and the Department of Transportation (DOTr) recently launched the interim operation of the AFCS in September, covering six (6) units of modern public utility vehicles (MPUVs) of PM Jeepney Drivers Operators and Services, Inc. (PMJDOSI). The remaining 144 MPUV units out of the total 150 PUV units shall soon be deployed in selected pilot sites in NCR, Central Luzon 3, Calabarzon, and Metro Cebu. Aside from the mCommuter app, LANDBANK contactless cards may also be used as cashless payment instruments in AFCS-enabled PUV units.


Estrella, Borromeo approve IRR on agrarian debt moratorium

Land Bank of the Philippines (LANDBANK) President and CEO Cecilia C. Borromeo and Agrarian Reform Secretary Conrado M. Estrella III hold the signed implementing rules and regulations (IRR) for Executive Order No. 4 Series of 2022.  In compliance with the directive of President Ferdinand R. Marcos, Jr., Agrarian Reform Secretary Conrado M. Estrella III and Land Bank of the Philippines (LANDBANK) President and CEO Cecilia C. Borromeo, today, September 28, 2022, signed the Joint Administrative Order providing the implementing rules and regulations (IRR) for Executive Order No. 4 Series of 2022, which declares a moratorium on the payment of land amortization and interests for agrarian reform beneficiaries. Signed by the President on September 13, 2022, the EO entitled, “Directing the Implementation of a Moratorium on the Payment of the Principal Obligation and Interest of the Amortization Due and Payable by Agrarian Reform Beneficiaries,” calls for a one-year moratorium on loan payments of Agrarian Reform Beneficiaries (ARBs) who received agricultural land under the Comprehensive Agrarian Reform Program (CARP). “It is our duty in the government to prioritize the farmers, not only because they are the ones who keep us alive, but because they will make our economy rise again,” the President said. The IRR signed by the Department of Agrarian Reform (DAR) and LANDBANK specifies that the one-year moratorium covers the payment of the Principal Value and the Annual Interest Due and payable by the ARBs.  “The one-year moratorium period will provide the needed time for Congress to pass the law condoning the existing agrarian reform loans for the current ARBs and free land distribution for future beneficiaries,” Estrella said. It primarily covers the financial obligation to pay the total cost of the land under Presidential Decree No. 27, including interest at the rate of six percent (6%) per annum as provided under Section 6 of E.O. No. 228; and the financial obligation to pay the principal value including the six percent (6%) annual interest of the thirty (30)-year land amortization of the ARBs under Section 26 of RA No. 6657, as amended. “LANDBANK supports this historic initiative which is now taking off. We will provide immediate financial relief to ARBs nationwide, and yield positive results towards ensuring food security in the country,” said LANDBANK President Borromeo. LANDBANK serves as the collection agent of the National Government for land amortizations from ARBs, pursuant to its mandate as the financial intermediary of the CARP. All collections are remitted by the Bank to the Bureau of the Treasury (BTr) as part of the revenue of the National Government. The DAR-LANDBANK Joint Administrative Order covers the identification of beneficiaries qualified to avail of the one-year payment suspension, with the impact of the initiative to enhance the productivity and profitability of the ARBs duly documented and promoted.  EO No. 4 directs the DAR and LANDBANK to jointly submit to the Office of the President, through the Office of the Executive Secretary, a comprehensive report on the implementation of this Order, including data on the number of ARBs actually covered and impact of the moratorium, among others. The DAR-LANDBANK Joint Administrative Order shall take effect upon publication in the Official Gazette or in a newspaper of general circulation.