The Land Bank of the Philippines posted a 29-percent decline in net income for the first half of 2014 from a year earlier, but the state-owned bank remains confident it will meet its profit target for the full year.
In a statement on Friday, the LandBank reported a first-half net income of P6.0 billion, down from P8.5 billion earned in the same period of 2013.
LandBank President and Chief Executive Officer Gilda Pico said the drop in net income was due primarily to lower trading gains as brought about by unfavorable market conditions, which have also hit other banks’ earnings.
“We still managed to surpass the year-to-date target net revenue by 5 percent and remain on track to meet our year-end target net income,” Pico said.
At the same time, LandBank’s Basel 3 capital adequacy ratio remains strong at 15.5 percent, she said.
The bank’s total assets grew 38 percent to P942 billion from P681 billion last year. Total deposits also registered significant growth to P808.4 billion, 49 percent higher than the P542.8 billion in June last year. Meanwhile, its total capital stood at P70.4 billion.
LandBank’s return on equity and net interest margin at 12.7 percent and 3.6 percent remain higher than the latest industry average of 10.1 percent and 3.2 percent, respectively.
Despite the decline, the bank said it remains confident about meeting its full-year profit target of P12 billion because of its continued expansion and new programs.
As of June 2014, LandBank was present in the country’s 80 provinces with a nationwide network of 345 branches and 1,272 ATMs. It remains the biggest lender to the agricultural sector, microenterprises and small and medium enterprises, and local governments.