State-run Land Bank of the Philippines (LandBank) saw net income slip 4 percent to P24.2 billion in the first half of the year as higher operating expenses offset stronger earnings from its core lending and investment businesses.
In its latest financial statement, the lender said net income as of end-June fell from P25.2 billion a year earlier.
Despite the lower profit, LandBank’s net interest income rose 8.6 percent to P57.9 billion as interest income grew 4.7 percent to P79.1 billion. A nearly 20-percent increase in investment income to P34.6 billion offset a 1.5-percent decline in loan income to P43.5 billion, while interest expenses fell 4.5 percent to P21.2 billion.
Higher operating expenses, however, dragged on earnings, rising 8.3 percent to P33.6 billion from P31.1 billion a year earlier. Compensation and fringe benefits increased to P13.2 billion from P11.3 billion, while LandBank booked P2.69 billion in trading losses. Other operating income rose 38 percent to P9.87 billion on higher fee and commission income and foreign exchange revaluation gains.
As of end-June, LandBank’s assets grew 2.8 percent to P3.54 trillion, while liabilities rose 3.9 percent to P3.29 trillion. Total borrowings surged nearly 660 percent to P128.2 billion from P16.9 billion a year earlier, driven by a more than 2,000-percent jump in domestic borrowings after LandBank raised P49.66 billion through its Asenso Bonds and tapped P50 billion from the Bangko Sentral ng Pilipinas’ discount window facility.
Earlier, LandBank said it had no plans to issue another bond this year and would return to the debt market in 2027, subject to market conditions.
Foreign borrowings rose 61 percent to P18.9 billion, driven by higher bills payable, including P8.03 billion in deposit substitute repurchase agreements and P30 million in interbank term loans.