The Land Bank of the Philippines (LANDBANK) posted a net income of P31.85 billion in the first nine months of the year, the highest ever for the bank since it first breached the P30 billion mark at the end of 2022.
The P31.85 billion profit is also a significant expansion (a 24% increase) from the P25.7 billion it recorded last year.
Bird’s eye view of Landbank of the Philippines office in Manila
In a media advisory, the state-run bank said that this year’s net income also exceeded their target of P26.3 billion for the first three quarters by P5.6 billion.
It also represents 90.9% of the P35 billion full-year target for 2023.
“The unprecedented income was driven by the aggressive expansion of our developmental loan portfolio, coupled with robust yields from loans and investments. We have likewise been prudent and disciplined in managing our expenses to maximize gains,” said LANDBANK President and CEO Lynette V. Ortiz.
“We will ensure that our solid balance sheet continues to translate to substantial and meaningful support to the sectors that we serve,” she continued.
Double-digit growth
LANDBANK has generated P91.15 billion in interest income from loans and investments, 35.9% higher than last year.
The bank’s total assets also booked double-digit growth of 11.5% to P3.1 trillion from P2.8 trillion. The increase was propelled by the 12.8% year-on-year expansion of deposits to P2.7 trillion.
Meanwhile, the bank’s capital also rose substantially by 21.9% to P249.2 billion from P204.4 billion in 2022, already exceeding the full-year target of P243.8 billion for 2023.
LANDBANK’s financial ratios remain at healthy levels, with Capital Adequacy Ratio (CAR) at 16.15% and Common Equity Tier 1 (CET 1) at 15.30%, which are both well above the minimum requirements of the Bangko Sentral ng Pilipinas (BSP).
Return on Equity stood at 15.97%, significantly higher than the industry rate of 13% as of June 2023.
LANDBANK ranks among the top universal banks in the country, coming in second in assets and deposits, and fourth in loans and capital as of the first semester of 2023.
