LANDBANK regular loans up 33% to P799.2B in 2018, records highest growth in 10 years

Tuesday, February 12, 2019

Government-owned Land Bank of the Philippines reported record-high growth in its gross loan portfolio, as it capped 2018 with P799.2 billion in gross regular loans. This is higher by 33% than the P601.2 billion reported in 2017 and is the highest year-on-year growth since 2009.

This translates to a 29% rise in the Bank’s gross loan portfolio to P867.3 billion from P674.4 billion as of end-2017.

LANDBANK President and CEO Alex V. Buenaventura attributed the significant increase to substantial growth in the Bank’s loans to its priority sectors, which reached P734.4 billion as of end-December 2018. This is a 30% surge from P564.1 billion in 2017 and makes up 92% of the Bank’s total loans to all sectors of P798.8 billion.

The Bank’s priority sectors comprise of small farmers and fishers (SFFs), a good part of which are agrarian reform beneficiaries; MSMEs; agri- and aqua-projects including those of Local Government Units (LGUs) and Government Owned and Controlled Corporations (GOCCs); communications; transportation; housing; education; health care; environment-related projects; tourism; utilities, and other industries in support of National Government priority programs.

“We have been very aggressive in expanding our support to our priority sectors, especially the farmers, as we strive to make our loan programs more accessible to the sectors we are mandated to serve. We have a long way to go, but this is a commitment we take seriously and shall remain the Bank’s priority thrust moving forward,” said Buenaventura.

LANDBANK’s outstanding loans to small farmers, including agrarian reform beneficiaries and their associations grew by 9% to P49.3 billion from P45.2 billion as of end-2017.

Agri-business loans also registered hefty growth, with 83% increase to P151.2 billion from P82.6 billion. This brings the Bank’s support for agriculture and fisheries up by 25% to P172.7 billion, which includes loans for aqua-business and loans for agri-aqua related projects of LGUs and Government Owned and Controlled Corporations GOCCs.

Meanwhile, the Bank’s support for National Government priority programs jumped 35% to P512.4 billion from P380.7 billion. These include loans for microenterprises and SMEs, which increased by 51% to P135.5 billion; tourism which is up by a hefty 151% to P22.1 billion; communications at P44.7 billion with a 43% increase; and healthcare which rose by 35% to P19.2 billion.

Other sectors that registered significant growth include education which grew 33% to P8 billion; utilities which is 27% higher at P133.7 billion; transportation at P51.7 billion with 33% growth; and housing (socialized, low cost and medium cost) higher by 23% at P59 billion.

LANDBANK remains the biggest credit provider to small farmers and fishers, and the biggest lender to LGUs and MSMEs among government financial institutions.