LAND BANK of the Philippines (LANDBANK) saw its net income rise by 10.96% year on year in the first quarter amid continued loan growth.
The state-run lender’s net profit grew to P13.288 billion in the three months ended March from P11.975 billion in the same period a year ago, according to its financial statement posted on its website.
LANDBANK said in a statement that its first-quarter net income was 32% above its target for the period.
Net interest income rose by 15.06% to P26.28 billion from P22.84 billion a year ago. This came as interest income went up by 13.53% year on year to P38.03 billion, while interest expenses increased by 10.25% to P11.74 billion.
Other income climbed by 16.42% to P3.56 billion in the first quarter from P3.06 billion a year prior.
Meanwhile, other operating expenses grew by 11.395% year on year to P15.38 billion in the first three months from P13.81 billion.
LANDBANK’s gross loan portfolio climbed by 8% to P1.58 trillion at end-March.
Its agriculture, fisheries, and rural development loans stood at a record P844.61 billion in the first quarter, comprising 53.4% of its total loan portfolio.
“The bank supported nearly 28,000 new small farmers and fishers during the period, bringing total beneficiaries assisted to 4.04 million nationwide. This was accomplished through a mix of direct lending, credit conduits, and capacity-building interventions, spanning the entire agricultural value chain,” it said.
The bank’s investments rose by 14% to P1.5 trillion, supported by growth in both trading and non-trading portfolios.
On the funding side, deposits rose by 4.74% year on year to P3.02 trillion in the first quarter.
As a result, LANDBANK’s total assets expanded by 4.84% to P3.426 trillion as of end-March from P3.268 trillion a year ago.
Total capital was at P295.62 billion, up by 6.79% from P276.83 billion.
LANDBANK remitted a record P33.53 billion in cash dividends to the National Government in the first quarter, which is expected to help fund priority infrastructure and socioeconomic programs, it said. This was higher than its P32.12-billion remittance a year prior.
“The P33.53-billion dividend underscores LANDBANK’s unwavering support for government priorities that uplift lives and communities across the country. It also reflects our strong financial foundation and vital role as a pillar of inclusive growth, ensuring that our sustained performance translates into real and lasting impact,” LANDBANK President and Chief Executive Officer Lynette V. Ortiz said.
“LANDBANK’s record-breaking dividend reflects the institution’s solid fundamentals and strategic financial management. This contribution will help power President Ferdinand R. Marcos, Jr.’s infrastructure push, investments in education and healthcare, and food security agenda. And it does all this while staying true to its core mission: delivering accessible and responsive financial services to Filipinos across the country,” Finance Secretary and LANDBANK Chairman Ralph G. Recto said. — Aaron Michael C. Sy
