LAND BANK of the Philippines’ (LANDBANK) net income decreased by 18% year on year in the first quarter as the year-ago level was buoyed by a one-time gain.
LANDBANK booked a net income of P10.8 billion in the January-to-March period, lower than the P13.2 billion seen in the first quarter of 2022 that was “propelled by non-recurring miscellaneous income,” it said in a statement on Thursday.
This translated to a return on equity of 12.46%.
Other details on its financial performance were not immediately available.
Despite the year-on-year decline, its first-quarter profit was higher by P2 billion versus its target for the period and made up 30.8% of the bank’s P35-billion income goal for 2023.
LANDBANK said its first-quarter earnings were supported by higher interest income and lower operating costs.
“Interest income from loans and investments rose 54% to P20.9 billion, despite the higher cost of funds due to volume of deposits and rising interest rates,” it said.
Deposits with the bank rose to P2.8 trillion at end-March, with 71% of this being deposits by the government sector.
Meanwhile, net interest margin stood at 3%.
“On the other hand, operating expense declined by P797 million,” LANDBANK added.
The bank’s capital rose by 3.2% to P225.3 billion.
Its assets grew by 11.7% to P3.1 trillion at end-March.
“As we maximize yields from earning assets while being prudent with our expenses, LANDBANK’s robust financial position allows us to advance the National Government’s development agenda,” LANDBANK President and Chief Executive Officer Cecilia C. Borromeo was quoted as saying.
“We are fully capable to continue extending intensified support to the agriculture sector and other key economic industries, while driving sustainable growth in local communities,” Ms. Borromeo added. — AMCS