Land Bank of the Philippines FY 2023 Net Income Hit PHP40.3B

The Land Bank of the Philippines (LANDBANK) exceeded its full-year target by P5 billion and concluded 2023 with an all-time high net income of P40.3 billion, the first time it had ever crossed the P40 billion mark.

The bank made P30.4 billion in profit in 2022; this is a significant 34% increase. Strong income from loans and investments, combined with careful cost control, drove the impressive financial performance.

"LANDBANK’s strong financial performance in 2023 exemplifies sound management committed to deliver remarkable results in a thriving economy. We will build on this growth momentum to further drive meaningful investments in advancing inclusive and sustainable development in the country," said LANDBANK President and CEO Lynette V. Ortiz.

At P3.3 trillion, Landbank's assets increased by 4.2% because of robust deposit inflows as well as revenue from loans and investments. Deposits at the bank increased by 4.5% to P2.9 trillion.

Because of its outstanding profitability, the state-run bank's capital position at year's end increased to P266.8 billion, demonstrating its stability and strength. This represents a 27% annual increase over P210.6 billion in the previous year.

With a capital adequacy ratio (CAR) of 16.35% and a common equity Tier 1 ratio (CET 1) of 15.46%, Landbank's financial ratios were stable. With a return on equity of 16.87%, it was substantially greater than the industry average of 12.15%.

Along with other important development sectors, this solid financial foundation will help support agriculture, fishery, and rural development (AFRD) even more, all in keeping with the Bank's larger mission of serving the country.

More infrastructure facilities and essential services were made available to Filipinos nationwide between January and December 2023 as a result of loans made by LANDBANK to a number of industries. ​​

“We look forward to 2024 as another banner year for LANDBANK, underscoring our commitment to transformative and disruptive digital initiatives. This momentum gives us much optimism towards reaching new milestones in expanding financial inclusion nationwide,” added President and CEO Ortiz.

Ralph G. Recto, the chairman of LANDBANK and Finance Secretary, recently met with the management of LANDBANK and praised the Bank for exceeding its financial goals in 2023, keeping a strong capital position, and stepping up support for rural development, agriculture, and fisheries. He also praised the bank for its steadfast backing of national government initiatives and the adoption of diverse digital platforms.

In addition, Secretary Recto guaranteed complete backing for the bank's strategic plans in 2024 concerning, among other things, digital banking, cybersecurity, treasury and investment, and national development lending.
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LANDBANK was awarded the highest corporate governance grade by the Governance Commission of GOCCs (GCG) in 2022, out of all government-owned and controlled corporations (GOCCs) in the nation. ​​