MANILA, Philippines – The state-run Landbank of the Philippines (Landbank) increased its net income by 27% to 21.8 billion pesos in 2021, as provisioning for losses fell by more than two-fifths from compared to 2020 levels.
In a statement issued on Sunday, February 13, the government financial institution (GFI) attributed its net profit growth of 17.1 billion pesos in 2021 to “the lower cost of funds and the provision for losses”.
Landbank’s income and expenditure statement at the end of 2021 showed that the provision for credit losses and impairments last year amounted to P5.3 billion.
In 2020, Landbank suffered a 7.4% decline in net profit from 18.5 billion pesos in 2019, which the lender attributed to “the provision for probable losses which is significant at 9.3 billion pesos” at the start of the COVID-19 pandemic.
Before the pandemic, Landbank’s loss provisioning was only 5.2 billion pesos in 2019, so the 2020 amount was “the highest provisioning we have ever made in the history of operations of Landbank,” he said on his website.
Landbank exceeded its net income target of 19.7 billion pesos for 2021.
Landbank said its total assets rose 9.5% to 2.59 trillion pesos in 2021, from 2.36 trillion pesos in 2020, due to an 8.4% increase in account deposits. public and private to 2.27 trillion pesos.
Its merger with the state-run United Coconut Planters Bank (UCPB), which will take effect on March 1, will make Landbank, as a surviving entity, the Philippines’ second largest lender by assets, which would total nearly of 3,000 billion pesos.
While the national government injected 27.5 billion pesos in equity last year, Landbank ended 2021 with a capitalization of 207.7 billion pesos, up 23.4 percent from 2020 levels. Capital was also boosted by rising retained earnings of annual net income, he added.
Landbank said its return on equity ratio last year was above the industry average at 11.6%, while return on assets rose slightly to 0.88% from 0.78% in 2020. Its net interest margin stood at 2.9% in 2021.
“Landbank’s strong financial base puts the bank in a unique position to support the entire agricultural sector and other development industries,” he said.
“From January to December 2021, total Landbank lending resulted in the provision of various basic services and infrastructure,” he added.
“These include 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 of 18,303 households connected to drinking water,” he said.
“Landbank’s strong financial performance at the close of 2021 is a testament to its resilience and ability to thrive in the midst of another challenging year,” said the bank’s President and CEO, Cecilia Borromeo.
“We will build on this momentum as we continue to take on an expanded role and a more holistic approach to supporting key development sectors and the nation as a whole,” Borromeo said.
The Inquirer Foundation supports our primary health care and is still accepting cash donations to be deposited to Banco de Oro (BDO) current account # 007960018860 or donate through PayMaya using this link .
To subscribe to MORE APPLICANT to access The Philippine Daily Inquirer and over 70 titles, share up to 5 gadgets, listen to news, download as early as 4am and share articles on social media. Call 896 6000.