State-run Land Bank of the Philippines said over the weekend net income declined 7 percent in 2020 to P17.1 billion from P18.5 billion in 2019 as the COVID-19 pandemic reduced economic activities during the period.
LandBank president and chief executive Cecilia Borromeo said despite the challenging environment, the bank posted marked growth in assets and deposits in 2020—a record achievement given the widespread economic impact of the health crisis.
“We will build on these gains and continue along this path to better serve our priority sectors, especially small farmers and fishers, micro, small and medium enterprises and other key development players,” Borromeo said in a statement.
Deposits breached the P2-trillion mark which allowed the bank to record a 16.1-percent increase in total assets of P2.362 trillion in 2020 from P2.033 trillion in 2019.
Deposits expanded to P2.093 trillion, or 17.4 percent higher than P1.783 trillion in 2019. This also fueled a significant 41.4-percent growth in investments from P694.9 billion to P982.5 billion.
Meanwhile, year-end capital increased by 13 percent to P168.3 billion from P149.0 billion in 2019.
The bank said financial ratios remained strong despite the challenges set by the pandemic. The bank posted a return on equity of 10.80 percent, above the latest industry average. Return on assets stood at 0.78 percent and net interest margin at 3.16 percent.
Common Equity Tier 1 ratio continued its steady growth year-on-year from 12.74 percent to 15.17 percent.
LandBank said with increased focus on supporting the agriculture sector, total loan portfolio to farming and fishing industries expanded from P236.31 billion in 2019 to P237.62 billion in 2020. Of the amount, P43.98 billion went to small farmers and fishers, cooperatives and farmers’ associations, rural financial institutions and other conduits.
The bank said it assisted 2.67 million farmers and fishers nationwide as of end-2020, or a 133.5-percent accomplishment rate over the full-year target of two million.
About 718,875 small farmers were assisted through the Rice Farmers Financial Assistance and Financial Subsidy to Rice Farmers Programs jointly implemented with the Department of Agriculture.
LandBank is present in all 81 provinces through 411 branches, 66 branch-lite units and 55 lending centers.
The bank reported that transactions facilitated through its six major electronic channels—the LandBank Mobile Banking App, Link.Biz Portal, weAccess, iAccess, Electronic Modified Disbursement System, and Remittance System—collectively recorded a 21-percent increase in volume and a 36-percent growth in value in 2020.
The bank announced that the waiver on inter-bank fund transfer fees would remain until March 31, 2021. First implemented at the height of community lockdowns and previously extended until December 2020, the waiver covers retail clients who transfer funds through the bank’s online banking channels via InstaPay and PESONet.