Landbank Davao targets 5% loan portfolio growth
DAVAO CITY — Governmentrun Land Bank of the Philippines’ (Landbank) Davao Lending Center expects to increase its P12-billion portfolio in 2016 by at least 5% this year, with the boost to come by way of new clients primarily from the agricultural sector and start-ups.
Charlotte I. Conde, Landbank vice- president and loan center head, told BusinessWorld in an interview last week she is “confident the center will hit its 5% target in annual loan increase” as they look for new clients as well as sustain existing priority accounts, particularly large-scale agricultural enterprises.
She added that the bank has maintained a low non-performing loan rate of 1.8% “as we have been able to efficiently collect from our borrowers.”
“We have priority accounts that have been loyal to us,” Ms. Conde said, citing as an example banana companies that are expanding in the Davao Region, particularly in Compostela Valley province.
She noted that the bank did not have exposure in the banana
companies in Compostela Valley when typhoon Pablo ( international name: Bopha) hit the region in 2012, destroying about 8,000 hectares of banana farms.
As such, the bank was among the financial institutions that helped the affected farmers recover from the devastation.
Ms. Conde added that they are also open to extend financing to other businesses, including startups.
Last week, the bank approved a P26- million loan for PTO Ventures and Management Co., which will be processing stones into construction materials.
The company is using the fund to buy equipment and set up its processing plants in Davao City, PTO Ventures President Renato E. Elorza said during the contract signing.
Mr. Elorza said they are also looking into developing the company’s banked properties in Davao within the next two years for socialized housing projects. —