State-owned Land Bank of the Philippines said it is on track to meet its P12 billion full-year net income target despite a double-digit drop in the first nine months.
In a statement, the bank said its third-quarter net income stood at P9.3 billion, down 11 percent from P10.4 billion last year
Gilda Pico, LandBank president and chief executive officer, traced the decrease in net income to more challenging business conditions this year against exceptional trading gains recorded in 2013.
“We managed to surpass the year-to-date target net revenue by 3 percent and we remain confident about meeting our full-year target,” Pico said, adding that the decline in third quarter revenue is significantly narrower than the 29 percent drop in the first half of the year.
The bank noted that its nine-month net income translated to a return on equity of 14.5 percent, while its total assets grew 24 percent to P910.9 billion from P731.8 billion last year on the back of steady growth in loans and investments.
LandBank’s gross loan portfolio, on the other hand, grew 22.7 percent to P362.3 billion from P295.3 billion, while investments grew 6 percent to P273.9 billion from P258.3 billion a year ago.
Total deposits also registered substantial growth to P781.8 billion, 32 percent higher than last year’s P593.3 billion. Total capital stood at P72.1 billion, 3 percent lower than last year’s P74.2 billion.