LANDBANK net income up 27% in 2021
LAND BANK of the Philippines (LANDBANK) posted a 27% growth in its net income year on year in 2021 on the back of lower cost of funds and loan loss provisions.
The state-run bank’s net profit grew to P21.75 billion in 2021, up from P17.14 billion a year earlier and higher than its P19.68-billion income target.
LANDBANK’s net income translated to a return on equity of 11.75%, while return on assets rose to 0.88% from 0.78%.
The bank’s net income in 2020 dropped by 7.57% amid the economic downturn caused by the coronavirus pandemic.
The earnings growth can be attributed to the lower cost of funds and provisions for losses, the bank said in a statement on Sunday.
LANDBANK President and CEO Cecilia C. Borromeo said the bank’s financial performance in 2021 showed resiliency “amid another challenging year.”
“We will build on this momentum as we continue to take on an expanded role and a more holistic approach in supporting key development sectors and the nation at large,” she said.
The state-run bank’s total assets rose 9.5% to P2.586 trillion from P2.362 trillion a year earlier.
“This was propelled by deposits expanding by 8.39% to P2.269 trillion, mainly from the rise in deposits of government and private accounts,” LANDBANK said.
The bank’s net interest margin was at 2.86%.
LANDBANK’s loans to the agriculture and development sectors last year financed the construction of 303 kilometers of farm-to-market roads, 33 hospital buildings, 1,954 hospital beds, 9 school buildings, and 96 classrooms. The loans also connected 18,303 households to potable water.
LANDBANK’s merger with the United Coconut Planters Bank (UCPB) will take effect on March 1, with the combined entity producing a lender with nearly P3 trillion in assets.
President Rodrigo R. Duterte in June last year signed an executive order approving the merger, in which all assets and liabilities of UCPB will be transferred to LANDBANK. The order noted that the banks both have a compatible development mission. — J.P. Ibañez
