MANILA, Philippines - Land Bank of the Philippines posted a 4% increase in net income to P5.74 billion in the first half of the year, from P5.52 billion in the same period in 2011.
In a statement, Land Bank president Gilda E. Pico attributed the higher profit to income from loans to priority sectors such as agriculture, fisheries, and micro, small and medium enterprises.
"Our solid performance in the first half of the year was driven primarily by the consistent upward trend in our revenues from loans and investments," she said.
Land Bank's outstanding loans stood at P249.9 billion as of end-June, 5% up from P237.9 billion during the same period last year.
Deposits dropped by close to 4% to P461.9 billion, from P479.8 billion during the same period last year. Its total assets fell 1.7% to P599.2 billion.
Land Bank's capital adequacy ratio is still strong at 20.81%, compared to the Bangko Sentral's minimum requirement of 10%.
"The strong capital ratio attests to Land Bank’s sound financial position and reflects its capacity to aggressively expand its loan portfolio to its priority sectors, including farmers and fisherfolk cooperatives, microenterprises and SMEs, agribusiness, local government units, and rural banks," she said.