Landbank earnings up 19% in H1

MANILA, Philippines - Earnings of state-run Land Bank of the Philippines went up 19 percent in the first half of the year on the back of strong growth in loans and investments.

Landbank president and CEO Gilda Pico said the government financial institution booked a net income of P7.2 billion in the first six months of the year, or P1.16 billion higher than last year’s P6.04 billion.

Pico pointed out the bank exceeded its P6 billion target for the first half of the year by 20 percent or P1.2 billion.

She traced the bank’s strong financial performance in the first semester of the year to the sustained growth in loans and investments as well as the continued focus on core operations.

Interest income on loans grew 18 percent as Landbank’s gross loan portfolio expanded 16.2 percent to P414 billion as of end-June this year from P356.1 billion in end-June last year.

Likewise, earnings from investments in financial assets rose 36 percent.

 “We are on track to meet our full-year targets and well positioned for continued growth as we double our efforts in strengthening our core business segments,” Pico said.

The government financial institution is looking at a 3.3 percent growth in net profits to P12.5 billion this year from P12.1 billion last year.

The bank topped its P12 billion net income target last year as profits went up by 3.4 percent to P12.1 billion in 2014 from P11.7 billion in 2013.

For the first half of the year, Landbank said its return-on-equity was at a high 18.26 percent while net interest margin stood at 3.25 percent.

The bank’s total assets increased 16 percent to P1.09 trillion in end June this year from P942 billion in end June last year. Total deposits rose 18 percent to P954.3 billion from P808.4 billion.

Landbank’s total capital stood at P74.5 billion in end June.

The government financial institution is present in all provinces with a nationwide branch network of 353 as well as 1,404 ATMs.