Landbank posts 7% profit hike

Posted at 11/10/12 8:11 AM

MANILA, Philippines - State-run Land Bank of the Philippines posted a seven percent earnings growth for the first nine months of 2012 to P7.6 billion, from P7.1 billion in the same period in 2011, on higher income from loans and investments.

Landbank president and CEO Gilda Pico said besides loans and investments, income growth was also driven by a rise in foreign exchange profit.

She said the bank also managed to slightly cut down on its expenses for the period.

As a result, the bank attained a high return-on-equity of 14.2 percent as of September 2012.

“Landbank had a solid third quarter as we continued to focus on core businesses of the bank, maintain prudent operations, and remain aggressive in expanding our loan portfolio, all geared towards better serving our priority sectors,” Pico said.

The bank’s total assets expanded to P629.2 billion as of September 2012 from P590.6 billion a year earlier.

Deposits also increased to P489.5 billion from P459.6 billion, while capital expanded to P73 billion from P65.6 billion in the same period last year.

Gross loan portfolio, in turn, grew to P241.9 billion from P237.5 billion.

The bank’s Basel II CAR of 20.9 percent as of end-September 2012 remained much higher than the regulatory standard of 10 percent.

The strong capital ratios reflect the bank’s capacity to aggressively expand its loan portfolio as the economic recovery further gains momentum.