Landbank loans to priority sectors up in H1

MANILA, Philippines - Loans extended by state-run Land Bank of the Philippines to priority sectors rose 27.5 percent amid sustained growth in financing extended to small farmers and fishers, microenterprises, small and medium enterprises (MSMEs), utilities as well as housing in the first half of the year.

Data from the government financial institution showed loans extended to priority sectors amounted to P342.86 billion in end June this year, P73.96 billion higher than the P268.9 billion in end June last year.

The share of loans extended to priority sectors from Landbank’s total loan portfolio increased to 87.12 percent in end June this year from 82 percent in end June last year.

Landbank’s priority sectors include small farmers/agrarian reform beneficiaries and fishers (SFFs) and their associations, microenterprises and SMEs, agri- and aqua-businesses, agri-aqua related projects of local government units as well as government-owned and controlled corporations, communications, transportation, housing, education, health care, environment-related projects, tourism, and utilities.

Loans extended to SSFs reached P29.4 billion in the first six months of the year,  up 23.5 percent from P23.8 billion in the same period last year.

Likewise, loans extended to MSMEs inched up 3.4 percent to P46.95 billion from P45.4 billion, while housing loans jumped 26.8 percent to P39.7 billion from P31.3 billion.

The bank’s loans to the utilities sector jumped 38.8 percent to P57.49 billion in end June this year from P41.4 billion in end June last year after it entered into a partnership with the National Electrification Administration (NEA) to provide financing assistance to Electric Cooperatives and wholesale power aggregators under its Bringing Inclusive Growth in every Household through National Electrification Support Services program.

Landbank also extended loans to the transportation sector with 25.4 billion, communications sector with P21.23 billion, environment-related with P6.99 billion, healthcare with P6.42 billion, education with P3.95 billion, and tourism with P3.79 billion.

In support for agriculture and fisheries, Landbank has extended P85.41 billion worth of loans for agri-business, aqua-business as well as agri-aqua related projects of LGUs and GOCCs from January to June this year.

During the period, Landbank’s total loan portfolio went up 25.8 percent to P413.98 billion from P328.9 billion.

Earlier, Landbank president Gilda Pico reported the bank’s earnings went up 19 percent to P7.2 billion in the first half of the year from P6.04 billion in the same period last year.

Pico 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.

Landbank is present in all provinces with a nationwide branch network of 353 as well as 1,404 ATMs. It is set to open eight more branches and extension offices this year.