State-run Land Bank of the Philippines (LandBank) on Wednesday reported that its net income for the first half of 2015 grew by double-digit rates and exceeded its target for the period.
In a statement, LandBank said net income for the first half rose 19 percent to P7.2 billion from P6.04 billion in the same period last year, beating the first-half income target of P6 billion by 20 percent.
The bank’s return on equity for the six-month period was at a high of 18.26 percent while net interest margin stood at 3.25 percent, both well above the latest industry averages.
LandBank president and chief executive officer Gilda Pico attributed the increased income to sustained growth in loans and investments and the continued focus on core operations.
The bank’s interest income on loans jumped 18 percent as its gross loan portfolio grew to P414 billion from P356.1 billion in June 2014, while income from investments in financial assets grew by 36 percent.
“We are on track to meet our full-year targets and well-positioned for continued growth as we double our efforts in strengthening our core business segments,” Pico said.
LandBank said its total assets went up by 16 percent to P1.09 trillion from 942 billion in June 2014. Total deposits grew to P954.3 billion, up 18 percent from P808.4 billion in June last year. Total capital stood at P74.5 billion.
In addition, the bank said it is the only universal bank present in all provinces of the country with its nationwide network of 353 branches and 1,404 automated teller machines (ATM).
LandBank added it is looking to open eight more branches and extension offices within the year.
To complement its network of branches, the bank also launched the LandBank Easy
Access Facility (LEAF), in line with its thrust toward greater financial inclusion.
LEAFs function as another banking office that allows clients to conduct non-transactional banking activities such as ATM withdrawals, self-service cash deposits, submission of loan applications and requirements for opening accounts, and inquiries about loans, savings, and other products and services.
The bank has so far opened 20 LEAFs in rural locations across the country as of June this year.
On August 8, LandBank is set to celebrate its 52nd anniversary of helping its clients and stakeholders grow.
It remains the biggest credit provider to small farmers and fishers, local government units, and is the biggest lender to microenterprises and small and medium enterprises among government financial institutions.