Deposits breached the PHP2-trillion mark which allowed state-run Land Bank of the Philippines (LANDBANK) to record a 16.1% increase in total assets of PHP2.362-trillion in 2020 from its 2019 level of PHP2.033-trillion.
LANDBANK said deposits expanded to PHP2.093-trillion, 17.4% higher from PHP1.783-trillion in 2019. This also fueled a significant 41.4% growth in investments from PHP694.9-billion to PHP982.5-billion.
“LANDBANK posted marked growth in assets and deposits in 2020—a record achievement given the widespread economic impact of the health crisis. We will build on these gains and continue along this path to better serve our priority sectors, especially small farmers and fishers, micro, small and medium enterprises and other key development players,” said LANDBANK President and CEO Cecilia C. Borromeo.
Reduced economic activities brought about by the COVID-19 pandemic, however, caused a 7% drop in net income to PHP17.1-billion from PHP18.5-billion in 2019. Meanwhile, year-end capital increased by 13% to PHP168.3-billion from PHP149.0-billion in 2019.
The Bank’s financial ratios also remained strong despite the challenges set by the pandemic. LANDBANK posted a return on equity of 10.80%, which is well above the latest industry average. Return on assets stood at 0.78% and net interest margin at 3.16%. Common Equity Tier 1 ratio continued its steady growth year-on-year from 12.74% to 15.17%.
With the Bank’s increased focus on supporting the country’s agriculture sector, LANDBANK’s total loan portfolio to farming and fishing industries expanded from PHP236.31-billion in 2019 to PHP237.62-billion in 2020. Of this amount, PHP43.98-billion benefitted small farmers and fishers, cooperatives and farmers’ associations, rural financial institutions, and other conduits.
LANDBANK has also assisted cumulatively 2.67 million farmers and fishers nationwide as of end-2020, or a 133.5% accomplishment rate over the full-year target of two (2) million. Of this total, 718,875 small farmers were assisted through the Rice Farmers Financial Assistance (RFFA) and Financial Subsidy to Rice Farmers (FSRF) Programs jointly implemented with the Department of Agriculture (DA).
In line with the Bank’s sustained drive for financial inclusion, LANDBANK is present in all 81 provinces of the country through 411 branches, 66 branch-lite units, and 55 lending centers.
LANDBANK continues to respond to the growing demand for safe, accessible and convenient digital banking solutions under the new normal. The Bank reported that transactions facilitated through its six major electronic channels—the LANDBANK Mobile Banking App, Link.Biz Portal, weAccess, iAccess, Electronic Modified Disbursement System (eMDS), and Remittance System—collectively recorded a 21% increase in volume and a 36% growth in value in 2020.
The Bank recently announced that the waiver on inter-bank fund transfer fees will remain until March 31, 2021. First implemented at the height of community lockdowns and previously extended until December 2020, the waiver covers retail clients who transfer funds through LANDBANK’s online banking channels via InstaPay and PESONet.
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