PROFITS by state-run Land Bank of the Philippines from loans and investment rose and fueled double-digit growth in its net income for the first quarter.
In a statement on Wednesday, LandBank said its net income during the quarter surged 24 percent to P3.6 billion from P2.9 billion a year earlier. It also exceeded its target of P3.12 billion for the period by 15 percent.
The bank’s return-on-equity stood at 18.25 percent, while net interest margin reached 3.32 percent, both above the latest industry averages.
LandBank President and Chief Executive Officer Gilda Pico attributed the bank’s solid first-quarter performance largely to the substantial rise in profits from loans and investments.
The bank’s interest income on loans jumped 19 percent as its gross loan portfolio grew to P398 billion from P353.1 billion in March 2014.
Meanwhile, income from investments in financial assets surged 68 percent to P4.7 billion from P2.8 billion.
“We are on track to maintain this momentum and meet our full-year targets, as we continue to manage our risk portfolios and grow both traditional and non-traditional revenue sources,” Pico said.
LandBank’s total assets expanded 20 percent to P1.05 trillion from P873.7 billion.
Total deposits rose to P911.4 billion, up by 24 percent from 733.8 billion previously, while capital increased 7 percent to P72.5 billion.
LandBank is the only bank present in all of the country’s provinces with a nationwide network of 352 branches and 1,371 automated teller machines as of April 2015.