Thursday, 6 August 2009

LandBank posts record profit for first haLandBank posts record profit for first half of 2009lf of 2009

Erik de la Cruz
Business Mirror

STATE-owned Land Bank of the Philippines posted a record net income of P3.58 billion for the first half of 2009, as interest income on loans and investments increased.

The bank on Wednesday said the bottom-line figure was up 40 percent over the P2.56-billion profit for the same period last year.

In a statement, LandBank said its regular loans increased by 38 percent to P160 billion from P116.5 billion last year, while annualized return on equity, a measure of profitability, improved to 18.3 percent as of end-June from 15.4 percent a year ago.

Deposits held by the bank increased by 27 percent to P362.2 billion.

LandBank, which ranked fourth- biggest by assets among local banks as of end-March, had total assets of P470.2 billion as of end-June, representing a 27-percent expansion over last year.

After raising P6.9 billion in fresh capital in June through the issuance of Tier 2 notes, the bank’s capital adequacy ratio improved to 17.7 percent, way above the minimum regulatory requirement of 10 percent.

“The continued strengthening of our financial position will further benefit our priority sectors as this will allow LandBank to continue pouring in more credit assistance to the small farmers and fisherfolk, microenterprises, small and medium enterprises, and local government units across the country,” its president Gilda Pico said.

LandBank was previously looking to grow its loan portfolio this year by 7 percent to 10 percent from a base of P184.7 billion as of end-2008.

In May Pico said the bank was likely to beat its full-year 2008 net income target of P5.5 billion.

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