Landbank income exceeds P40-B mark

State-run Land Bank of the Philippines (Landbank) expects its income to reach P45 billion this year after overshooting its 2023 bottomline target.

In a statement, Landbank said its net income jumped by 33.8 percent to hit a record P40.3 billion in 2023 from P30.1 billion in 2022.

This is the first time that Landbank’s income breached the P40-billion mark.

Prior to its financial statement release yesterday, Landbank president and CEO Lynette Ortiz said the bank targets to sustain its record performance.

“We are looking to grow at the very least 10 to 12 percent from how we ended 2023,” Ortiz said.

This means that Landbank aims to earn at least P44.33 billion to as much as P45.13 billion this year.

“We look forward to 2024 as another banner year, underscoring our commitment to transformative and disruptive digital initiatives,” Ortiz said.

In 2023, Landbank’s performance was driven by strong revenues from loans and investments, alongside prudent cost management.

“We will build on this growth momentum to further drive meaningful investments in advancing inclusive and sustainable development in the country,” Ortiz said.

In terms of assets, Landbank grew its base by 4.2 percent to P3.3 trillion as deposits grew to P2.9 trillion, coupled by income generated from loans and investments.

Landbank’s capital stood at P266.8 billion as of end-2023, rising by 27 percent on the back of strong profitability.

The bank’s financial ratios also remain at healthy levels, with capital adequacy ratio at 16.35 percent and common equity tier 1 at 15.46 percent, both well above the minimum requirements of the Bangko Sentral ng Pilipinas.

Ortiz maintained that Landbank’s strong financial base would further enhance support for agriculture, fisheries and rural development, as well as other key development sectors.