MANILA, Philippines – State-run Land Bank of the Philippines posted a net income of P2.9 billion in the first quarter of 2014, down 44 percent from P5.1 billion in the same period last year.
Landbank president and CEO Gilda Pico said the drop was brought about by lower profits from investments as a result of an increase in interest rates from historically low levels in the first half of 2013.
“Notwithstanding these low Q1 results, we are encouraged as income from loans remains strong. We are well-positioned for sustained growth this year as we continue to expand our deposits and increase revenue from traditional and non-traditional sources,” Pico said.
Despite the drop in earnings during the three-month period, the bank’s deposits grew a hefty 28 percent to P733.8 billion from P574.7 billion in end-March 2013.
Loans also increased 13.4 percent to P310.9 billion from P274.1 billion. Total assets increased 18 percent to P873.7 billion while capital stood at P67.6 billion.
Pico said the lower income would not hinder Landbank from performing its main function as the biggest lender to the agricultural sector.
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The bank’s priority sectors comprise, among others, small farmers and fisherfolks, microenterprises and SMEs, agri-aqua related projects of LGUs and GOCCs, socialized to medium cost housing, and utilities.
At present, Landbank has 344 branches and 1,256 ATMs in 80 provinces.
It also plays a significant role in major government programs such as the Conditional Cash Transfer, the Food Supply Chain Program, and the OFW Reintegration Program.
Landbank is also one of four local banks upgraded to investment grade rating by Moody’s in 2013.
