Landbank income down to P10.8 billion in 3 months

MANILA, Philippines — Land Bank of the Philippines saw its net income slip by nearly 20 percent to P10.8 billion in the first quarter following a record performance in the same period in 2022.

The government financial institution said its net income went down by 18 percent to P10.8 billion in January to March from the record P13.2 billion in the first quarter last year, as it was affected by non-recurring miscellaneous income.

The bank’s performance was likewise influenced by higher interest income from loans and investments, which surged 54 percent to P20.9 billion, even amid increased cost of funds due to volume of deposits and rising interest rates.

Similarly, Landbank’s operating costs, which went down by almost P800 million, also contributed to the weaker performance.

Despite the decline in net income, Landbank said the first quarter performance is P2 billion better than its target.

Likewise, its first quarter performance is still about 31 percent of the bank’s income target of P35 billion bottomline by end of the year.

In terms of assets, Landbank grew its base by 11.7 percent to P3.1 trillion as deposits grew to P2.8 trillion.

The government sector remains to be the core depositor of the bank, contributing 71 percent of its total deposits.

Further, Landbank’s capital stood at P225.3 billion as of end-March, inching up by 3.2 percent.

The bank said this was achieved despite the P8.45 billion in special cash dividends remitted to the national government, as well as the decline in other comprehensive income.

Its financial ratios also remain at healthy levels, with return on equity at 12.46 percent and net interest margin at three percent.

Landbank maintained that its financial position would allow it to advance the government’s development agenda.

“We are fully capable to continue extending intensified support to the agriculture sector and other key economic industries, while driving sustainable growth in local communities,” Landbank said.