State-run Land Bank of the Philippines (LandBank) posted significant improvement in net income in the third quarter this year, latest data show.

“(LandBank’s) net income for the third quarter stood at P13.97 billion, which is 23 percent higher compared to P11.36 billion to the same period last year,” it said.

This was also 12 percent higher than its P12.48 billion target for the period.

LandBank president and CEO Cecilia Borromeo traced this development to the notable increase in profits due mainly to a 50 percent growth in loan income.

“We continue to grow (LandBank’s) financial position as the bank’s profitable operations allow us to consistently drive support for our priority sectors, especially farmers and fishers,” Borromeo said.

Gross loan portfolio stood at P869.31 billion as of end-September 2019, 3.64 percent higher than the P838.75 billion in the same period last year.

“Total assets grew by 11 percent to P1.96 trillion from P1.77 trillion as of September last year, driven by growth in loans and investments,” the lender said.

Deposits also expanded by 11 percent to P1.74 trillion from P1.57 trillion, while capital grew by 16 percent to P144.87 billion from P124.88 billion in the same period last year,” it added.

LandBank’s lending to agriculture remains the highest in the industry as its gross loans totaled P227.55 billion as of 30 September. This includes P41.25 billion worth of loans to small farmers, fishers and their associations. Other players in the agri-business value chain booked only P186.29 billion.

“(LBP) remains largely compliant with the Agri-Agra Credit Law, with 21.74 percent compliance to the prescribed allocation for agrarian reform credit and 429.29 percent compliance for other agricultural credit as of 30 September this year.,” the bank said.

LBP eyes a full-year income target of P16.64 billion.