LAND BANK of the Philippines (LANDBANK) saw its net income rise by 24% in the first nine months of the year amid higher interest earnings from loans and investments, putting it on track to meet its profit target.
The state-run lender’s net profit stood at P31.85 billion as of end-September, higher than the P25.7 billion in the same period last year, the bank said in a statement on Sunday.
This is the highest net income recorded by the bank since it first breached the P30-billion mark at end-2022, it said.
This also exceeded the P26.3-billion goal for the first three quarters of the year and makes up 90.9% of the P35-billion full-year target.
LANDBANK’s performance in the first nine months translated to a return on average equity of 15.97%.
Other details about the bank’s financial performance for the period were not immediately available.
“The unprecedented income was driven by the aggressive expansion of our developmental loan portfolio, coupled with robust yields from loans and investments,” LANDBANK President and Chief Executive Officer Lynette V. Ortiz said.
“We have likewise been prudent and disciplined with managing our expenses to maximize gains. We will ensure that our solid balance sheet continues to translate to substantial and meaningful support to the sectors we serve,” she added.
The bank’s interest income from loans and investments rose by 35.9% year on year to P91.15 billion.
Deposits grew by 12.8% to P2.7 trillion at end-September.
LANDBANK’s total assets went up by 11.5% to P3.1 trillion as of September from P2.8 trillion in the same period a year ago.
Total capital climbed by 21.9% to P249.2 billion from P204.4 billion in the same period in 2022, exceeding the lender’s full-year target of P243.8 billion.
“LANDBANK’s financial ratios remain at healthy levels, with capital adequacy ratio (CAR) at 16.15% and common equity Tier 1 at 15.30%, both well above the minimum requirements of the Bangko Sentral ng Pilipinas (BSP),” the lender said.
LANDBANK and the Development Bank of the Philippines earlier said they have requested regulatory relief from the BSP’s capital requirements following their P75-billion contribution to the Maharlika Investment Fund.
Last week, BSP Governor Eli M. Remolona, Jr. said the central bank still needs to evaluate the requests of the state-owned lenders. — Keisha B. Ta-asan