LANDBANK’s equity to reach P230.4B after gov’t infusions

LAND BANK of the Philippines’ (LANDBANK) total equity is estimated to reach about P230.4 billion by end-April after capital infusions from the government, the Department of Finance (DoF) said.

The DoF said in a press release on Tuesday that the end-April equity level will be a 160% increase from the P88.7-billion capital the state-run lender had in mid-2016 and would make it the second-largest universal bank with the highest paid-in capital in the country.

LANDBANK’s equity as of end-2021 stood at P207.68 billion.

The bank on Monday turned over 1.36 billion shares of stocks to the National Government worth P136.2 billion.

As of February 2021, the bank received P38.79 billion in fresh capital under the Duterte administration, accounting for over 70% of the total.

With its improved financial position, LANDBANK was able to provide low-interest loans for agriculture, fishing, healthcare, power, education, transportation, and housing, Finance Secretary Carlos G. Dominguez III said.

“The robust capital infusion reinforced LANDBANK’s financial strength and allowed it to be an effective partner of the government in advancing its development agenda. We have used that strength to better serve the Filipino people,” Mr. Dominguez was quoted as saying in the statement.

At end-2021, LANDBANK’s agriculture loan portfolio stood at P247.9 billion.

GENDER INITIATIVES
Meanwhile, LANDBANK said in a separate statement on Tuesday that it will allot 50.1% of its corporate operating budget for gender and development (GAD) initiatives, surging from the 9.3% share the previous year.

This will be used to roll out related programs in gender sensitivity and needs, lending programs, leave benefits, and other gender-responsive services, the bank said.

“LANDBANK has made significant strides in promoting GAD initiatives. We shall continue to sustain and intensify these efforts to mainstream gender equality and women empowerment, which includes exploring avenues for integrating gender-sensitive policies in all our processes and programs,” LANDBANK President and CEO Cecilia C. Borromeo said in a separate statement on Tuesday.

LANDBANK’s net income grew by 27% to P21.75 billion in 2021, higher than its P19.68-billion target, amid lower cost of funds and loan loss provisions.

This translated to a return on equity of 11.75%, while return on assets rose to 0.88% from 0.78%. — T.J. Tomas