FINEX President Toti Bengzon and transformation
The Philippines is forecasted to be a high middle-income country within this decade and the 18th largest economy in the world by 2050. This growth is expected to be fueled by remittances, business process outsourcing revenues, and the demographic dividend from a young population. Given the volatile environment filled with the complex issues that we face, 2024 FINEX President Augusto “Toti” Bengzon asked: “How can we achieve our growth agenda?”
President Toti was inspired by Andy Grove’s book Only the Paranoid Survive, which said: “A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is transformation”.
The real challenge is how we can achieve “transformational growth” in what is perhaps the inflection point that will either see us rise to expected economic success or muddle along with the rest of the world. “How do we make it happen?” President Toti then proposed three components that drive transformational growth: sustainability, diversity, and digitalization.”
The first component: sustainability. In the realm of ESG, environmental sustainability stands out as a pivotal pillar. The urgency to preserve our planet has never been more apparent, with climate change and environmental degradation posing existential threats.
The Philippine government, he said, has demonstrated its commitment on the global stage by signing key international agreements. The Kyoto Protocol in 2003 and the Paris
Agreement in 2016 affirmed the government’s intention to reduce greenhouse gas emissions and combat climate change. And more recently, it has actively participated in the Conference of the Parties (COP) meetings, including COP28, where nations come together to address global environmental challenges. These efforts underscore the country’s commitment to preserving biodiversity and fostering sustainability, nationally and internationally, and encourage us to integrate environmentally sustainable practices into our daily lives.
LANDBANK’s capital adequacy ratio stood at 16.35% and its common equity Tier 1 ratio was at 15.46%.
“This strong financial base will further enhance support for agriculture, fisheries and rural development, as well as other key development sectors, in line with the bank’s broader thrust of serving the nation,” the lender said.
The bank’s assets went up by 4.2% to P3.3 trillion last year, driven by income from loans and investments.
For this year, Ms. Ortiz earlier said the bank targets to grow its net income by at least 10-12%.
“We look forward to 2024 as another banner year for LANDBANK, underscoring our commitment to transformative and disruptive digital initiatives. This momentum gives us much optimism towards reaching new milestones in expanding financial inclusion nationwide,” she said on Thursday.
The bank said Finance Secretary and LANDBANK Chairman Ralph G. Recto, in a recent meeting with its management, pledged support for its strategic initiatives for this year for national development lending, treasury and investment, digital banking, and cybersecurity, among others. —