LANDBANK’s net income surges 141% in the 1st quarter
LAND BANK of the Philippines’ (LANDBANK) net income soared by 141% in the first quarter, it said on Sunday.
LANDBANK’s income for the first quarter was P13.2 billion, 141% higher than the P5.48 billion a year prior, the lender said in a statement on Sunday. This translates to a return on equity of 14.27%.
The bank said the profit surge is “attributed to higher interest income from loans and investments, as well as one-time gains from the merger with the United Coconut Planters Bank (UCPB).”
The lender did not provide complete figures on its first-quarter performance.
“LANDBANK’s income expansion runs parallel with the country’s strong economic resurgence. We will build on this growth trajectory to continue assisting key development sectors and contribute to our collective recovery, to drive our broader thrust of serving the nation,” LANDBANK President and Chief Executive Officer Cecilia C. Borromeo was quoted as saying in the statement.
The state-run bank also reported assets of P2.792 trillion as of end-March, 16% higher than the previous year’s P2.405 trillion. It said it remained the second-largest lender in the country in asset terms.
“The increase in assets was propelled by the merger, with UCPB contributing P291.83-billion additional assets. Major asset accounts, including loans and investments, likewise increased in double digits,” LANDBANK said.
President Rodrigo R. Duterte in June last year signed an executive order approving the merger between the two lenders, with LANDBANK as the surviving entity. The merger took effect on March 1.
As of end-March, LANDBANK’s total loans to its priority sectors reached P822.01 billion. Of the total, P236.86 billion went to the agriculture sector.
The lender also saw a 12% growth in its capital year on year to P218.36 billion from P194.59 billion, which it said was mainly due to the record net income booked in 2021. LANDBANK’s net profit 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. — T.J. Tomas
