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LAND
Bank of the Philippines posted a net income of P2.56
billion in the first semester of the year, up19 percent
from the same period last year.
The
bank’s first-half results buck the industry pattern of
lower profits on lower treasury gains.
LandBank
president and CEO Gilda Pico said the growth posted for
the first semester is a sign that the bank would be able
to meet its year-end goal of P4.5 billion. “Our first
semester financial performance gives strong indication
that we will be able to sustain our net income target at
year-end,” she said in a roundtable discussion with
reporters late Thursday.
The
bank’s profit was driven by higher net gains from loans,
investments and other fee-based transactions, which
reaped total revenues of P12.34 billion, up 3 percent
from the first semester of 2007.
Pico
explained that being a development bank, LandBank’s
interest income accounts for 60 percent of revenue,
making it less dependent on treasury gains.
Loans to
priority sectors rose to P89.1 billion in June 2008 from
P79.1 billion in June 2007. This is 69 percent of the
bank’s total regular loan portfolio that rose to P129.5
billion from P112.7 billion. Revenues from loans reached
5.76 billion, up 2 percent from P5.66 billion.
Investments fell 6 percent to P118.8 billion as the bank
expanded its loan portfolio.
Deposits
for the first half of the year fell to P285.4 billion
from P287.4 billion.
Soured
loans made up 3.6 percent of the bank’s total loan
portfolio of P6.1 billion, from 5.5 percent in the same
period last year and compares with the industry average
of 4.5 percent.
LandBank’s asset during the period stood at P370
billion, up from P369 billion.
The bank
currently has a capital adequacy ratio of 14.7 percent,
on a par with the industry average 14.7 percent.
Pico
said assistance from foreign banks are also in the
works. These include a €20-million assistance from KfW
bank of Germany for energy and climate change; and $18
million from the World Bank, the second tranche of a
$60.7-million assistance for the improvement of sewages
in Metro Manila.
Meanwhile, Pico said the bank is set to launch the
second public offering of its long-term negotiable
certificate of deposits for overseas Filipino workers (OFWs).
The
central bank has approved a maximum issuance of P5
billion but LandBank is eyeing only P2 billion. The
number, however, would depend on a reassessment of the
market in the run-up to the offer period.
“We
might offer P2 billion, depending on the appetite of the
market,” Pico said.
She said
the bank is planning to start the offer period in
September. The bank is also reviewing the documentation
requirements for OFWs since some potential investors are
“complaining” of paperwork.
LandBank
has hired the Hong Kong and Shanghai Banking Corp. as
lead arranger for the issuance. |
