Business World

Landbank books higher income

- K.A.N. Vidal

LAND BANK of the Philippine­s (Landbank) saw its net income grow in 2017 on the back of its robust core revenues.

In a statement sent to reporters on Thursday, state- owned Landbank said it posted a net income of P14.05 billion, climbing 4% from the P13.58 billion recorded in 2016.

Landbank’s net income growth was mainly supported by the double- digit growth of its core revenues.

The bank’s income from loans expanded 12% to P26.8 billion last year from P23.9 billion in 2016.

This, as the lender’s loan portfolio expanded by 30% to P674.3 billion last year, the bank said in the statement.

Landbank’s deposit base likewise rose 15% to P1.42 trillion from the P1.23 billion recorded in 2016 as it added new branches and automated teller machines and expanded the enrollment of its Internet and mobile banking subscriber­s.

Meanwhile, the bank’s income from investment­s also expanded 28% to P21.17 billion in 2017 from the P16.49 billion booked in the comparable year- ago period. Landbank’s investment portfolio rose 25% to P580.65 billion.

Return on equity was at 14.8% in 2017, while the lender’s total capital expanded to P104.59 billion by 23%.

“With our solid performanc­e in 2017 further reinforcin­g the [ b]ank’s foundation, we are confident with sustaining growth in 2018,” Landbank President and Chief Executive Officer Alex V. Buenaventu­ra was quoted as saying in the statement.

“Our core objective is to continuous­ly grow the net income in order to expand support to our priority sectors, especially the farmers and fishers, cooperativ­es, [and micro-, small and medium enterprise­s].”

Earlier, Landbank said it is eyeing to acquire the 66.67% stake of Philippine Dealing System Holdings Corp. (PDS) after its board approved the move last Jan. 23.

Mr. Buenaventu­ra said the lender’s acquisitio­n of PDS will “increase Landbank[‘ s] profits and accelerate developmen­t of capital markets in the country.”

Finance Secretary Carlos G. Dominguez III backed Landbank’s planned acquisitio­n of the country’s fixed-income exchange, saying that the Philippine Stock Exchange has taken too long to carry out its acquisitio­n of PDS.

Mr. Dominguez said recently that Landbank needs profits to subsidize farmer loans.

Landbank is the largest provider of loans to small farmers and fishers, cooperativ­es and local government units. As of September last year, it was the country’s fourth largest bank in asset terms with P1.48 trillion. •

 ??  ?? LAND BANK of the Philippine­s posted a higher net income in 2017.
LAND BANK of the Philippine­s posted a higher net income in 2017.

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