State-run Land Bank of the Philippines registered a higher net income in 2013 with P11.7 billion, a 9-percent increase from its P10.7-billion net income in 2012.
In a statement on Thursday, LandBank said that its net income for the year translates to a return on equity of 15.9 percent, and exceeds the bank’s year-end target of P10.5 billion by 12 percent. Net interest margin also remained above industry average at 3.49 percent, it added.
“LandBank wrapped up another fruitful year with a solid fourth quarter and we are confident about sustained growth this year, as we focus on further strengthening core business segments. We are grateful for the continued trust and support of our clients, whose loyal patronage contributes to our efforts to promote economic growth in step with the national government’s development platform,” said Gilda Pico, LandBank president and chief operating officer. LandBank said that steady growth in its investment income and loans drove the bank’s revenues for the year to reach P40.2 billion, a 16-percent growth from P34.8 billion in 2012.
The bank added that its regular loan portfolio registered an 11-percent increase to P303.9 billion from P273.4 billion. Investments income rose by 10 percent to P20.4 billion. The bank’s total assets also expanded by 22 percent to P841.8 billion from P689.1 billion in 2012, while capital funds were recorded at P72.3 billion. Total deposits increased by 30 percent to P705.9 billion from P543.8 billion.
In terms of capital adequacy ratio (CAR), LandBank said that its 20.10-percent CAR remained well above the regulatory minimum levels.
“Coverage ratios for gross loans at 3.68 percent, past due loans at 154.28 percent and nonperforming loans at 159.34 percent [also]remain higher than the latest industry averages,” it said.
Earlier, Pico said that the bank was committed to aggressively expand its financial and technical support to better serve its priority sectors, and all those who need it most. The LandBank president said that this was in line with the bank’s countryside development mandate, and in support of the government’s thrust toward inclusive growth.
The priority sectors of LandBank include small farmers and fisher folk and their associations, agri- and aqua-businesses, agri-aqua-related projects of local government units and government-owned and -controlled corporations, small and medium enterprises, communication, transportation, housing, education, healthcare, environment-related projects and tourism.