THE government-owned Land Bank of the Philippines (LandBank) reported double-digit increases in assets and deposits combined with a net income growth of 93.5 percent to P20.3 billion in the first half of 2022 from P10.3 billion the previous year.
In a statement, LandBank attributed the significant growth in its net earnings to prudent management of the cost of funds and sustained interest revenue from loans and investments.
Its total assets in the first six months of the year rose by 11.8 percent to P2.8 trillion, confirming its position as the country’s second-largest bank. This growth was driven by deposits totaling P2.5 trillion, which improved by 10.1 percent year on year.
The state-run lender said the government sector still makes up the majority of its total deposits, 62 percent, or P1.5 trillion, while the private sector made up the remaining 38 percent, or P930 billion.
It reported minimal capital growth year on year of 1.9 percent to P206.5 billion, with the net income jump of 93.5 percent for the six-month period ending June 30, 2022 accounting for the majority of the increase.
With its return on equity of 15.43 percent, a return on assets of 1.19 percent and a net interest margin of 2.92 percent, LandBank said its financial ratios are still at healthy levels and can meet the challenges of internal and external economic headwinds.
Cecilia Borromeo, president and chief executive officer of LandBank, said the bank’s strong financial performance will continue to drive its increased assistance to key industries, particularly the agriculture sector, in support of the continuing economic recovery of the country.
“We will also build on this growth momentum to further our efforts to rebuild local communities, increase financial inclusion and support the national government’s development agenda,” she added.