The Land Bank of the Philippines (Landbank) recorded a net income of P10.8 billion in the first three months of 2023, buoyed byhigher interest income and lower operating costs.
The three-month figure is P2 billion higher than its target for the first quarter and represents 30.8 percent of the bank’s P35 billion income target by year-end.
The net income recorded for the quarter slipped 18 percent from the unprecedented P13.2 billion booked in the same period last year,which was propelled by non-recurring miscellaneous income.
Interest income from loans and investments rose 54 percent to P20.9 billion, despite the higher cost of funds due to volume of deposits and rising interest rates.On the other hand, operating expensedeclined by P797 million.
“As we maximize yields from earning assets while being prudent with our expenses, Landbank’s robust financial position allows us to advancethe National Government’s development agenda. We are fully capable to continueextending intensified support to the agriculture sector and other key economic industries, while driving sustainable growth in local communities,” said Landbank President and CEO Cecilia Cayosa Borromeo.
In terms of assets, the bank grew its base by 11.7 percent to P3.1 trillion as deposits expanded to P2.8 trillion.The government sector remains to be the core depositor of the bank, contributing 71 percent of its total deposits.
Meanwhile, Landbank posted modest capital growth year-on-year at 3.2 percent to P225.3 billion.
This expansion was driven by the bank’s net income, notwithstanding the dividend remittance to the National Government in June 2022 worth P8.45 billion and the decline in other comprehensive income.
