LAND BANK of the Philippines (Landbank) saw its net income grow in 2017 on the back of its robust core revenues.

In a statement sent to reporters on Thursday, state-owned Landbank said it posted a net income of P14.05 billion, climbing 4% from the P13.58 billion recorded in 2016.

Landbank’s net income growth was mainly supported by the double-digit growth of its core revenues.

The bank’s income from loans expanded 12% to P26.8 billion last year from P23.9 billion in 2016.

This, as the lender’s loan portfolio expanded by 30% to P674.3 billion last year, the bank said in the statement.

Landbank’s deposit base likewise rose 15% to P1.42 trillion from the P1.23 billion recorded in 2016 as it added new branches and automated teller machines and expanded the enrollment of its Internet and mobile banking subscribers.

Meanwhile, the bank’s income from investments also expanded 28% to P21.17 billion in 2017 from the P16.49 billion booked in the comparable year-ago period. Landbank’s investment portfolio rose 25% to P580.65 billion.

Return on equity was at 14.8% in 2017, while the lender’s total capital expanded to P104.59 billion by 23%.

“With our solid performance in 2017 further reinforcing the [b]ank’s foundation, we are confident with sustaining growth in 2018,” Landbank President and Chief Executive Officer Alex V. Buenaventura was quoted as saying in the statement.

“Our core objective is to continuously grow the net income in order to expand support to our priority sectors, especially the farmers and fishers, cooperatives, [and micro-, small and medium enterprises].”

Earlier, Landbank said it is eyeing to acquire the 66.67% stake of Philippine Dealing System Holdings Corp. (PDS) after its board approved the move last Jan. 23.

Mr. Buenaventura said the lender’s acquisition of PDS will “increase Landbank[‘s] profits and accelerate development of capital markets in the country.”

Finance Secretary Carlos G. Dominguez III backed Landbank’s planned acquisition of the country’s fixed-income exchange, saying that the Philippine Stock Exchange has taken too long to carry out its acquisition of PDS.

Mr. Dominguez said recently that Landbank needs profits to subsidize farmer loans.

Landbank is the largest provider of loans to small farmers and fishers, cooperatives and local government units. As of September last year, it was the country’s fourth largest bank in asset terms with P1.48 trillion. — K.A.N. Vidal

RELATED ARTICLESMORE FROM AUTHOR