Land­bank books record P15.5 B in­come last year

The Philippine Star - - BANKING & FINANCE -

State-run Land Bank of the Philip­pines booked a dou­ble-digit profit growth to a record P15.5 bil­lion last year from P14.1 bil­lion in 2017 on the ro­bust per­for­mance of its core busi­nesses.

Land­bank pres­i­dent and chief ex­ec­u­tive of­fi­cer Alex Bue­naven­tura said the 10 per­cent rise in net in­come was boosted pri­mar­ily by the strong growth in its loan book.

“We achieved ex­cep­tional per­for­mance in 2018 with our net loan port­fo­lio ex­pand­ing sig­nif­i­cantly by 37 per­cent or more than P220 bil­lion to reach P840 bil­lion,” Bue­naven­tura said.

He added the gov­ern­ment-run bank con­tin­ues to sup­port the agri­cul­ture sec­tor as well as small and medi­um­sized en­ter­prises (SMEs) and lo­cal gov­ern­ment units (LGUs).

“We are pleased to have im­proved on our net in­come per­for­mance in 2018 as we con­tin­ued to ex­pand sup­port to our pri­or­ity sec­tors, es­pe­cially the farm­ers and fish­ers, co­op­er­a­tives, agribusi­ness, SMEs and LGUs,” Bue- naven­tura said.

He pointed out the bank’s net in­come could have been higher due to the sig­nif­i­cant growth in loans.

“How­ever, we in­curred a sig­nif­i­cant in­crease in man­power cost last year be­cause of the im­ple­men­ta­tion of the Salary Stan­dard­iza­tion Law which af­fected our in­come,” he said. Land­bank’s de­posit base grew 17 per­cent to P1.66 tril­lion last year from P1.42 tril­lion as gov­ern­ment and pri­vate sec­tor de­posits in­creased.

Cap­i­tal also in­creased 26 per­cent to P131.62 bil­lion from P104.6 bil­lion.

Land­bank re­mains the sin­gle largest lender to small farm­ers and fish­ers and the lead­ing provider of fi­nan­cial as­sis­tance to SMEs among gov­ern­men­towned and con­trolled cor­po­ra­tions as well as gov­ern­ment fi­nan­cial in­sti­tu­tions.

It also fi­nances projects in agri-in­fra­struc­ture, agri-busi­ness, schools and hos­pi­tals, farm-to-mar­ket roads, hous­ing and liveli­hood, and de­vel­op­ment projects of lo­cal gov­ern­ment units.

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