LAND BANK of the Philippines (LANDBANK) posted a 38.2% increase in its net income in 2022 on improved interest income from loans and investments and gains from fees, commissions, and foreign exchange.
The bank said in a statement on Sunday that its net profit stood at P30.1 billion in 2022, surpassing its target of P25.71 billion and rising from the P21.7 billion recorded the year prior.
This translated to a return on equity of 14.37% and return on assets of 1.05%.
“LANDBANK’s strong performance in 2022 represents another milestone year, with a solid balance sheet that continues to overcome external headwinds and yield sustainable growth. We look forward to a more favorable economic environment this year, as we take on a more prominent role in nation-building as a development institution,” LANDBANK President and Chief Executive Officer Cecilia C. Borromeo said.
“LANDBANK’s sound financial position is boosting its capacity to extend support to key development sectors, as part of its broader thrust of serving the nation,” the lender said.
The bank said its income breached the P30-billion mark for the first time, with the increase “driven by the substantial interest income from loans and investments, alongside earnings from fees, commissions, and foreign exchange, among other income sources.”
LANDBANK’s assets grew by 21.5% to P3.1 trillion at end-2022 from P2.6 trillion a year prior.
Deposit liabilities rose by 21.8% to P2.8 trillion from P2.3 trillion, with the government sector accounting for 67.6% or P1.9 trillion of the total. This includes deposits from National Government agencies and government-owned or -controlled corporations, which rose by 48.1% and 22.5%, respectively.
The bank’s capital also rose by 1.4% year on year to P210.6 billion from P207.7 billion, even after it remitted P8.5 billion in special cash dividends to the National Government in June 2022 amid its record net income.
Meanwhile, its net interest margin was at 2.97%.
Other details on its 2022 financial performance were not immediately available. — A.M.C. Sy