Domestic banks have been strong performers lately, with the Land Bank of the Philippines’ (LandBank) net earnings up 93.5 percent to P20.3 billion in the first half of 2022 from P10.3 billion a year ago.
The bank said the solid performance would benefit the administration’s agriculture initiatives.
LandBank’s impressive net income was due to its prudent management of the cost of funds and sustained interest income from loans and investments.
“LandBank’s robust financial performance will continue to drive its intensified assistance to key industries, especially the agriculture sector, to support the country’s continuing recovery. We will also build on this growth momentum to further our efforts to rebuild local communities, advance financial inclusion, and support the National Government’s development agenda,” LandBank president and chief executive Cecilia Borromeo said in a statement.
The official said that LandBank’s total assets in the year’s first half grew by 11.8 percent to P2.8 trillion, further solidifying its ranking as the second-largest bank in the country.
This was propelled by deposits amounting to P2.5 trillion, up 10.1 percent year-on-year.
“The government sector continues to account for the bulk of LandBank’s total deposits at 62 percent or P1.5 trillion, while the private sector comprised the remaining 38 percent share amounting to P930 billion,” Borromeo added.
Moreover, LandBank posted modest capital growth year-on-year at 1.9 percent to P206.5 billion, primarily because of the 93.5 percent surge in net income for the six months ended 30 June.
The bank’s financial ratios remain healthy, with return on equity at 15.43 percent, return on assets at 1.19 percent, and net interest margin at 2.92 percent.
“Through the years, LandBank has grown into one of the leading universal banks in the country while remaining faithful to its social mandate to promote inclusive and sustainable development,” Borromeo said.
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