LANDBANK’S Q1 INCOME UP 141% ON INTEREST, GAIN IN UCPB DEAL

STATE-RUN Land Bank of the Philippines grew 141 percent in the first quarter on the back of higher interest income and the one-time gain from its acquisition of United Coconut Planters Bank (UCPB).

Landbank reported a net income of P13.2 billion in the first three months of the year compared to its net income in the same three-month period in 2021 of P5.48 billion.

“[This is] attributed to higher interest income from loans and investments, as well as one-time gains from the merger with the United Coconut Planters Bank [UCPB],” Landbank said.

The higher net income translates to a return on equity of 14.27 percent, which is well above the industry average of 9.08 percent as of end-december 2021.

“Landbank’s income expansion runs parallel with the country’s strong economic resurgence. We will build on this growth trajectory to continue assisting key development sectors and contribute to our collective recovery, to drive our broader thrust of serving the nation,” Landbank CEO Cecilia Borromeo said.

Landbank’s asset growth hit 16 percent to P2.792 trillion as of end-march 2022.

The bank attributed the increase in assets to the merger, with UCPB contributing P291.83 billion additional assets. Major asset accounts, including loans and investments, likewise increased in double-digits.

The bank also booked a 12-percent growth in capital year-on-year to P218.36 billion from P194.59 billion, mainly due to the record net income in 2021.

“Landbank’s sound financial position furthered its capacity to provide financial and support services to the agriculture sector and other development industries,” the bank said.

As of end-march 2022, Landbank’s total outstanding loans to its priority sectors reached P822.01 billion, of which P236.86 billion was channeled to support the agriculture sector.