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Philippines
Thursday, July 25, 2024

LandBank posted record P40.3-b net profit in 2023

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State-owned Land Bank of the Philippines said Thursday its net income breached the P40-billion mark for the first time, ending 2023 with a record P40.3 billion, up by 34 percent from the 2022 profit.

This surpassed its full-year target by P5 billion, fueled by strong revenues from loans and investments, coupled with prudent cost management.

“LandBank’s strong financial performance in 2023 exemplifies sound management committed to delivering remarkable results in a thriving economy,” said LandBank president and chief executive Lynette Ortiz.

“We will build on this growth momentum to further drive meaningful investments in advancing inclusive and sustainable development in the country,” she said.

LandBank’s assets climbed 4.2 percent to P3.3 trillion, bolstered by strong deposit inflows and income generated from loans and investments. Deposits grew 4.5 percent to P2.9 trillion.

The state-run bank maintained a stable and robust capital position, with year-end capital jumping 27 percent year-on-year to P266.8 billion, compared to P210.6 billion in 2022.

LandBank’s financial ratios remained healthy, with capital adequacy ratio (CAR) at 16.35 percent and common equity tier 1 ratio (CET 1) at 15.46 percent. Return on equity stood at 16.87 percent, higher than the 12.15-percent industry average.

This strong financial base will further enhance support for agriculture, fisheries and rural development (AFRD), as well as other key development sectors, aligned with LandBank’s broader thrust of serving the nation.

“We look forward to 2024 as another banner year for LandBank, underscoring our commitment to transformative and disruptive digital initiatives,” said Ortiz.

“This momentum gives us much optimism towards reaching new milestones in expanding financial inclusion nationwide,” she said.

Finance Secretary and LandBank chairman Ralph Recto commended the bank for its achievements in 2023, including surpassing financial targets, maintaining a strong capital position and intensifying support for AFRD.

He also lauded the bank’s support for government programs and implementation of digital platforms.

Recto also expressed full support for LandBank’s strategic initiatives in 2024, which focus on national development lending, treasury and investment, digital banking and cybersecurity.

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