Landbank nets P3.5B in 9 mos

State-owned Land Bank of the Philippines (Landbank) has moved a step closer to meeting its P4 billion net income target for the year, its top official told The STAR in a recent interview.

Landbank president Gilda Pico said the bank’s net income rose to P3.5 billion as of end-September due to an increase in loans to its target market and efficient investment operations.

“We hit P3.5 billion as of end-September. This is already  very near our net income goal of P4 billion for the year. We are on track with our target,” Pico said.

In the first semester of the year, the bank posted a net income of P2.15 billion, the highest-ever attained by the financial institution in one semester.

Pico said the rosy figures will further strengthen Landbank’s initiatives in the countryside and allow it to expand its reach to farmers and fisherfolk who are Landbank’s mandated clients.

As of June 2007, Landbank’s assets reached P367.8 billion or 17 percent higher than the P315.7 billion posted in same period last year.

Data from the bank also showed that Landbank’s capital increased by 40 percent to P35.8 billion from P25.5 billion while deposits grew by 13 percent to P278.1 billion from P245.4 billion in June 2006. 

Pico said that Landbank will further strive to meet its net income target for next year of P4.5 billion.

Its higher-than-expected net income has allowed Landbank to remit P1 billion in cash dividends to the National Government, bringing the bank’s contributions to P16.5 billion since 1996.

Under Republic Act 7656 or the Dividends Law of 1994, government-owned and-controlled corporations and government financial institutions are required to remit half or 50 percent of the income earned in each fiscal year to the National Government. The remittance should be in the form of cash or in unencumbered or real estate properties with clean titles.

Landbank has been beefing up its resources to enhance its lending facilities to its clients.

It has allocated P3 billion for lending to small and medium enterprises through a new credit facility, the so-called Countryside Loan Fund – Credit Support for the Environment, Agribusiness and Small and Medium Enterprises or CLF-CREAM program.

Through this initiative, Landbank aims to address the medium to long-term financial requirements of borrowers in various projects.

Under the facility, a single-borrower may borrow up to P300 million for working capital or fixed assets requirements.

Landbank said the facility will prioritize the financing of agriculture and agri-related projects, food and agro-processing ventures, manufacturing activities, product distributions, service-oriented activities like warehouse, utilities and transportation, environmental protection such as renewable energy projects.