The Land Bank of the Philippines (LANDBANK) ended 2023 with an all-time high net income of P40.3 billion—the very first time that it breached the P40-billion mark surpassing its full-year target by P5 billion.
The profit also translates to a substantial 34% expansion from P30.1 billion in 2022.
The robust financial performance was fueled by strong revenues from loans and investments alongside prudent cost management.
“LANDBANK’s strong financial performance in 2023 exemplifies sound management committed to deliver remarkable results in a thriving economy. We will build on this growth momentum to further drive meaningful investments in advancing inclusive and sustainable development in the country,” said LANDBANK President and CEO Lynette V. Ortiz.
LANDBANK’s assets climbed 4.2% to P3.3 trillion, bolstered by strong deposit inflows and income generated from loans and investments. The Bank saw deposits grow by 4.5% to P2.9 trillion.
The state-run Bank maintains a stable and robust capital position, with year-end capital jumping to P266.8 billion on the back of strong profitability. This translates to 27% year-on-year growth from P210.6 billion last year.
LANDBANK’s financial ratios continued 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.
This strong financial base will further enhance support for agriculture, fisheries and rural development (AFRD), as well as other key development sectors, in line with the Bank’s broader thrust of serving the nation.
From January to December 2023, LANDBANK’s loans granted to various sectors translated to more infrastructure facilities and basic services provided to Filipinos across the country.
“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,” added President and CEO Ortiz.
Finance Secretary and LANDBANK Chairman Ralph G. Recto recently met with the LANDBANK Management, and commended the Bank for surpassing its financial targets in 2023, maintaining a strong capital position, and intensifying support to agriculture, fisheries, and rural development. He also lauded the bank’s strong support of the national government’s programs and the implementation of various digital platforms.
Secretary Recto also assured full support for the bank’s strategic initiatives in 2024 for national development lending, treasury and investment, digital banking, and cybersecurity, among other areas.
LANDBANK garnered the highest rating for corporate governance in 2022 among government-owned and controlled corporations (GOCCs) in the country from the Governance Commission of GOCCs (GCG).