Landbank's Jan-June profits up 3.8% to P5.74-B
MANILA, Philippines - State-run Landbank of the Philippines reported a P5.74 billion net income in the first 6 months of the year, reflecting a 3.83% increase from the same period a year ago.
In a statement on Thursday, August 2, Landbank President and Chief Executive Officer Gilda Pico said the bank’s prudent management of operating costs as well as higher revenues from loans and investments, helped boost the first half income.
“Our solid performance for the first half of the year is driven primarily by the consistent upward trend in our revenues from loans and investments. This also reflects the Bank’s prudent management of operating costs and increased focus on strengthening other areas of profitability to better serve our priority sectors,” Pico said.
As of end-June, capital stood at P72 billion, translating to a capital adequacy ratio (CAR) of 20.81%, which is higher than the minimum 10% required by regulators. CAR is an indicator of the bank's ability to withstand industry shocks.
Return on equity, meanwhile, stood at 16.13%.
Landbank provides credit assistance programs to small farmers and fisherfolk, cooperatives, agribusiness, SMEs and microenterprise, local governments and rural banks.
It reporters a P9 billion net income in 2011 and P8.1 billion in 2010. Landbank is currently among the top 5 commercial banks in the country in terms of deposits, assets, loans and capital. - Rappler.com