State-run Land Bank of the Philippines, the fourth-largest lender in terms of assets, said Monday net income in the first four months climbed 26 percent to P5.068 billion from P4.038 billion it earned a year ago.
LandBank president and chief executive Alex Buenaventura said in a report to Finance Secretary Carlos Dominguez III the bank’s four-month net income also exceeded the P5.042-billion target for the period by 1 percent, or P26 million.
“The bank’s robust performance provides us the tools in fulfilling our goal of providing financial services to more borrowers in the countryside, particularly in the agricultural sector. We will continue to expand lending opportunities for small farmers, fishers and micro-entrepreneurs to help make growth truly inclusive for all Filipinos,” Buenaventura said in his report.
Gross revenues went up 30 percent in the four-month period to P20.43 billion from P15.77 billion registered in the same period last year.
Interest income on loans increased 30 percent to P10.553 billion as of end-April from P8.132 billion a year earlier. This accounted for the significant growth in LandBank’s net income.
Total loan portfolio expanded 37 percent or P197 billion.
LandBank said it also posted a higher income from investments at P6.425 billion, up by P301 million or 5 percent from last year’s P6.124 billion.
Interest income on government and private securities reached P1.302 billion, while gains from the sale, redemption or derecognition of non-trading financial assets amounted to P123 million.
Dividends received from equity investments declined P196 million, while income from financial assets held for trading decreased P928 million.
Profits from foreign exchange transactions grew P649 million or 136 percent as a result of the revaluation gain on the bank’s foreign-currency-denominated assets.
LandBank remains the biggest credit provider to small farmers, fishers, and micro, small and medium enterprises among government financial institutions. LandBank released loans worth P62.5 billion to over 800,000 farmers and fishers across the country in 2017.