Landbank records 16% hike in assets to P2.362T

DEPOSITS breached the P2-trillion mark, allowing state-run Land Bank of the Philippines (Landbank) to record a 16.1 percent increase in total assets of P2.362 trillion in 2020 from its 2019 level of P2.033 trillion.

Landbank said deposits expanded to P2.093 trillion, 17.4 percent higher from P1.783 trillion in 2019. This also fueled a significant 41.4 percent growth in investments from P694.9 billion to P982.5 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 7.0 percent drop in net income to P17.1 billion from P18.5 billion in 2019. Meanwhile, year-end capital increased by 13 percent to P168.3 billion from P149.0 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 percent, which is well above the latest industry average. Return on assets stood at 0.78 percent and net interest margin at 3.16 percent. Common Equity Tier 1 ratio continued its steady growth year-on-year from 12.74 percent to 15.17 percent.

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 P236.31 billion in 2019 to P237.62 billion in 2020. Of this amount, P43.98 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 percent accomplishment rate over the full-year target of two 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 percent increase in volume and a 36 percent 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.

For more updates, follow, like and share the official Landbank Facebook, Instagram and YouTube accounts (@landbankofficial), Twitter (@LBP_Official), and join our Viber community (@LANDBANK), or visit the Landbank website (www.landbank.com). (PR)

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