EARNINGS: Land Bank says Jan.-Sept. income up by 18.5%

State-owned Land Bank of the Philippines has reported that its net income rose by 18. 5 percent to P6.4 billion year-on-year in the January-September period. The continued improvement of the bank’s profitability could be attributed to the sustained upward trend in loans and investments, Land Bank president and CEO Gilda Pico said this weekend. “We are constantly strengthening our financial base and exploring opportunities for further growth in order to better serve our priority sectors," she said in a statement. Land Bank is mandated to lend to farmers and fisherfolk and pour the bulk of its resources into the countryside where micro- and medium-scale entrepreneurs thrive. As of end-September, Land Bank’s asset totaled P526.7 billion, up by 2.8 percent from P512.4 billion a year earlier. Land Bank said that the bulk of these assets were in the form of deposits, which amounted to P398.7 billion or 76 percent of total assets. Land Bank also reported that the bank’s capital expanded to P60.3 billion as of end-September, or 31 percent higher compared with last year’s P46.1 billion, allowing the bank to post an above-industry average capital adequacy ratio of 17.3 percent. The industry average is around 15 percent — well above the regulatory minimum of 10 percent and the global standard of 8 percent. “The strong capital ratios are indicative of the bank’s capability to ably withstand major risk scenarios. Moreover, the healthy capital ratios reflect the bank’s capacity to aggressively expand its loan portfolio as the economic recovery further gains momentum," Pico said. RCBC net income Meanwhile, the Yuchengco-led Rizal Commercial Banking Corp. (RCBC) announced that its net income reached P3.66 billion as of end-September, up by nearly 30 percent from P2.82 billion a year earlier and more than its full-year income of P3.3 billion in 2009. “RCBC’s strong performance reflects management’s success in executing its strategy of continued strong growth, with estimated record earnings of P4 billion this year," RCBC president and CEO Lorenzo Tan said in a statement. Contributing to its net income was the bank’s net interest income of P8.18 billion in January-September, up 8.32 percent. RCBC’s operating income grew to P6.59 billion, a 43.6-percent increase from the comparative figures of 2009. As of end-September this year, the bank’s branch network totaled 349, up from 335 branches a year earlier. This includes the continuing integration of JP Laurel Bank branches into the RCBC network. — JE/VS, GMANews.TV