State-run Land Bank of the Philippines (Landbank) recorded a net income of P21.75 billion in 2021–a 27 percent expansion from P17.14 billion in 2020–on the back of lower cost of funds and provision for losses.
Landbank’s total assets likewise grew 9.5 percent year-on-year to P2.586 trillion from P2.362 trillion. This was propelled by deposits expanding by 8.39 percent to P2.269 trillion, mainly from the rise in deposits of government and private accounts.
Year-end capital significantly increased to P207.68 billion, 23.39 percent higher from P168.31 billion in 2020, attributed tothe P27.5 billion equity infusion from the National Government in February 2021 and increase in retained earnings from annual net income.
“Landbank’s robust financial performance to close 2021 is a testament to resiliency and the capacity to thrive amid another challenging year. We will build on this momentum as we continue to take on an expanded role and a more holistic approach in supporting key development sectors andthe nation at large,” said Landbank President and CEO Cecilia C. Borromeo.
In terms of financial ratios, Landbank posted an above industry-average return on equity of 11.57 percent. Return on assets improved to 0.88 percent from 0.78 percent in 2020,while net interest margin is 2.86 percent.
Landbank’s strong financial base places the Bank in prime position to support the whole agriculture sector and other development industries.
