State-run Land Bank of the Philippines, one of the country’s top lenders, said over the weekend it posted a 141-percent increase in first-quarter net income to P13.2 billion from P5.48 billion a year ago, on higher interest income from loans and investments.
LandBank in a statement attributed the higher net profit in the quarter to “one-time gains from the merger with the United Coconut Planters Bank.”
The higher net income translated into a return on equity of 14.27 percent, above the industry average of 9.08 percent as of Dec. 31, 2021.
“LandBank’s income expansion runs parallel with the country’s strong economic resurgence. We will build on this growth trajectory to continue assisting key development sectors and contribute to our collective recovery to drive our broader thrust of serving the nation,” LandBank president and chief executive Cecilia Borromeo said.
LandBank remained the second largest bank in terms of assets at P2.792 trillion as of end-March, or 16 percent higher than P2.405 trillion in 2021.
The increase in assets was propelled by the merger with UCPB, which contributed P291.83-billion additional assets. Major asset accounts, including loans and investments, also increased at double-digits.
The bank booked a 12-percent year-on-year growth in capital to P218.36 billion from P194.59 billion, on the back of record net income in 2021.
Borromeo said LandBank’s sound financial position improved its capacity to provide financial and support services to the agriculture sector and other development industries.
The bank’s total outstanding loans to priority sectors reached P822.01 billion as of end-March, including P236.86 billion to support the agriculture sector.
The bank’s net income in 2021 grew 27 percent to P21.75 billion from P17.14 billion in 2020, on the back of lower cost of funds and provision for losses.
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.