Landbank beats 2016 income guidance as core businesses grow
LAND BANK of the Philippines (Landbank) breached its income target for 2016 on the back of continued growth in its core businesses, with the lender also posting a double-digit increase in assets.
In a statement e-mailed to reporters on Tuesday, the state-owned bank reported that its net income last year stood at P13.6 billion, up 2% from the P13.3 billion posted in 2015 and slightly above its P13.5-billion earnings guidance for 2016.
Landbank’s bottom line translated to a 16.4% return on equity last year, dropping from 2015’s 17.5%, but still higher than the industry average of 9.97% at end- September 2016.
“We are grateful to close the year with a strong and solid performance which enables us to further expand our services, reach and support to our mandated and priority sectors, particularly the farmers and fishers,” Landbank President and Chief Executive Officer Alex V. Buenaventura was quoted saying in a statement.
Landbank’s total assets stood at P1.4 trillion last year, up 17% from the P1.2 trillion recorded at end-2015, on the back of a double-digit growth in its deposit base that amounted to P1.24 trillion in 2016, up 18% from 2015’s P1.05 trillion, bulk of which came from private deposits.
At end-2016, the bank’s total capital reached P85.4 billion, a 7% increase from the P80 billion seen in 2015.
Landbank is the biggest credit provider to small farmers, fishers, local government units as well as micro, small and medium enterprises among government financial institutions.