By Reggie Vizmanos
Feb 22 min
State-owned Land Bank of the Philippines (Landbank) achieved its all-time high net income amounting to PHP40.3 billion in 2023.
The bank's 2023 profit translates to a substantial 34% expansion from PHP30.1 billion in 2022. I Photo: Land Bank of the Philippines
This marks the first time that the bank breached the PHP40-billion mark, surpassing its full-year target by PHP5 billion, according to Landbank President and Chief Executive Officer Lynette Ortiz.
The bank's 2023 profit translates to a substantial 34% expansion from PHP30.1 billion in 2022. The robust financial performance was fueled by strong revenues from loans and investments alongside prudent cost management, Ortiz noted.
Additionally, Landbank’s assets climbed 4.2% to PHP3.3 trillion, bolstered by strong deposit inflows and income generated from loans and investments. Deposits grew by 4.5% to PHP2.9 trillion.
The bank maintains a stable and robust capital position, with year-end capital jumping to PHP266.8 billion on the back of strong profitability. This translates to 27% year-on-year growth from PHP210.6 billion last year.
Landbank’s financial ratios continue to be at healthy levels, with Capital Adequacy Ratio (CAR) at 16.35% and Common Equity Tier 1 Ratio (CET 1) at 15.46%. Return on equity stood at 16.87%, significantly higher than the 12.15% industry average.
The bank stated that the strong financial base will further enhance support for agriculture, fisheries, rural development, and other key development sectors.
“We will build on this growth momentum to further drive meaningful investments in advancing inclusive and sustainable development in the country,” Ortiz said.
“We look forward to 2024 as another banner year for Landbank, underscoring our commitment to transformative and disruptive digital initiatives. This momentum gives us much optimism towards reaching new milestones in expanding financial inclusion nationwide,” she added.