Landbank on track to surpass profit goal

MANILA, Philippines — State-run Land Bank of the Philippines earned nearly P21 billion in the first six months of 2023, well on track to surpass its P35-billion target for the entire year.

In a statement, Landbank said its net income inched up by 2.7 percent to P20.9 billion in January to June from P20.3 billion in the same period last year.

This is 19 percent above the P17.6-billion target profit for the first half and is already 60 percent of the bottom line eyed by end-2023.

The bank’s performance was driven by higher interest income from loans and investments, which surged by 50 percent and 44 percent, respectively, even amid increased cost of funds due to volume of deposits and rising interest rates.

“We are very much on track in meeting our financial targets for the year, as income from loans and investments continue to expand,” Landbank president and CEO Lynette Ortiz said.

“Landbank is in a prime position to sustain our intensified support to the agriculture sector and other key industries,” she said.

In terms of assets, Landbank grew its base by 7.9 percent to P3 trillion as deposits grew to P2.7 trillion, an almost 10 percent expansion.

Further, its capital stood at P236.3 billion as of end-June, rising by 14.4 percent.

Its financial ratios also remain at healthy levels, with return on equity at 13.82 percent.

Landbank maintained that its financial position would allow it to advance the government’s development agenda.

Landbank remains among the top universal banks in the country in terms of assets, deposits, loans and capital.