Landbank strong, operations solid, not mismanaged

THIS IS in reaction to the erroneous representation of Landbank as a “mismanaged” organization in the editorial cartoon by Gilbert Daroy (Opinion, 2/24/16). This depiction has no basis whatsoever, and is contrary to the solid performance of Landbank over the years.

In 2015 alone, Landbank exceeded its targets, and continued to introduce banking innovations in line with its corporate objectives.

Landbank finished strong in 2015, with a record net income of P13.3 billion, which is a 10-percent increase from P12.1 billion of 2014. This translates to a high 17.15-percent return on equity. Landbank also registered 14 percent growth in deposits which breached the trillion mark for the first time at P1.05 trillion as of end 2015. The bank’s total assets also registered significant growth from P1.05 trillion to P1.2 trillion. It ranks fourth in assets, deposits and loans; and fifth in capital.

The bank’s financial performance has steadily strengthened alongside the expansion of loans to its mandated and priority sectors. Loans to priority sectors reached P384 billion in 2015, representing a record-high share of 88.3 percent against the bank’s loans to all sectors of P434.8 billion.

Since 2012, Landbank has remitted the highest cash dividends to the national government. Last year, it remitted P6 billion in cash dividends. This forms part of Landbank’s support to the government’s revenue generation efforts and fiscal consolidation program.

As a validation of its solid performance, Landbank has been receiving a string of major awards from prestigious local and international organizations for the past years, notably the “2014 Bank of the Year Philippines” award from The Banker, the world’s leading monthly journal of record for the banking industry. Dubbed as the “Oscars of the banking industry,” the award recognized Landbank for its strong management, sound business model, and prudent risk management.

In 2015, Landbank bagged three major awards from The International Banker in London, including the “Best Commercial Bank Philippines.” The awards recognize top-ranking organizations that set new benchmarks for performance and push the boundaries within the financial industry.

It is unfair to allude that there is mismanagement in Landbank when it has sustained solid operations and strong management as shown above.