LANDBANK remains among country’s most profitable banks

Wednesday, August 22, 2018

Government-owned Land Bank of the Philippines remains among the most profitable universal banks in the country as it reported a return on equity (ROE) of 13.4% in the first half of 2018. This is well above the latest industry average and surpasses the ROE reported by the country’s four other top banks. The Bank’s net interest margin likewise remained above industry average at 3.32%.

It also remains the biggest government bank in the country, with total assets reaching P1.7 trillion as of June 30, 2018 – a 14% increase from P1.48 trillion in the same period last year.  Its deposits likewise rose by a hefty 15% to P1.5 trillion from P1.3 trillion in June 2017 while capital stood at P117.4 billion. The Bank further sustained increase in its net income, which grew to P7.8 billion from the year-ago level of P7.4 billion.

LANDBANK President and CEO Alex V. Buenaventura said the increase in income was mainly propelled by steady growth in its loan portfolio. Revenues from loans jumped 30% as the Bank’s gross loan portfolio jumped 27% to P758.7 billion from P597.1 billion.

“LANDBANK remains among the most profitable banks in the country and we are confident about continued growth for the next half of the year. We work hard to maintain the Bank’s sound financial position as the profits from our commercial banking operations allow us to further drive support to our priority sectors, especially farmers and fishers,” said Buenaventura.

Last August 8, LANDBANK marked its 55th anniversary of promoting growth in the countryside through inclusive banking. It remains the biggest lender to the agricultural sector, especially small farmers and fishers, cooperatives, as well as microenterprises and SMEs.

In line with its anniversary celebration, the Bank recognized its outstanding clients and partners at the Gawad sa Pinakatanging Kooperatiba (PITAK), Gawad SME, Gawad Kaagapay, and Gawad Countryside Financial Institutions awarding ceremonies. Finance Secretary and LANDBANK Chairman Carlos G. Dominguez, Chairperson of the Senate Committee on Cooperatives Senator Juan Miguel F. Zubiri, Chairperson of the House Committee on Cooperative Development Congressman Rico B. Geron, and LANDBANK President and CEO Alex V. Buenaventura led the conferment of awards.

LANDBANK will also be holding a series of Financial Inclusion Caravans for the rest of the year, as part of its campaign to promote greater financial inclusion among unbanked and unserved communities, especially in fourth- and fifth-class municipalities. This follows the successful two-year run in 2016 and 2017, which reached 17 third- to sixth-class municipalities and helped over 7,000 unbanked and underserved Filipinos learn more about formal banking and other financial services.