Land Bank of the Philippines said Monday net income grew 27 percent in 2021 to P21.75 billion from P17.14 billion in 2020, on the back of lower cost of funds and provision for losses.
The bank said in a statement assets rose 9.5 percent year-on-year to P2.586 trillion from P2.362 trillion driven by deposits that expanded 8.4 percent to P2.269 trillion, mainly from the increase in deposits of government and private accounts.
Capital increased 23.4 percent to P207.68 billion from P168.31 billion in 2020, attributed to the P27.5-billion equity infusion from the national government in February 2021 and the increase in retained earnings from annual net income.
“LandBank’s robust financial performance to close 2021 is a testament to resiliency and the capacity to thrive amid another challenging year,” LandBank president and chief executive Cecilia Borromeo said.
“We will build on this momentum as we continue to take on an expanded role and a more holistic approach in supporting key development sectors and the nation at large,” she said.
The bank said it posted an above-industry average return on equity of 11.57 percent. Return on assets improved to 0.88 percent from 0.78 percent in 2020, while net interest margin was 2.86 percent.
A strong financial base placed it in prime position to support the whole agriculture sector and other development industries.
It said total loans translated into the delivery of various basic services and infrastructure facilities. These included the construction and improvement of 303 kilometers of farm-to-market roads, 33 hospital buildings, 1,954 hospital beds, 9 school buildings, 96 classrooms and 18,303 households connected with potable water.
Borromeo said the bank strived to strike a successful balance in fulfilling its social mandate of promoting national development while remaining financially viable, making it unique among universal banks in the country.
