Landbank of the Philippines (Landbank) president and chief executive officer Lynette Ortiz has welcomed Fitch Rating Inc.’s improved outlook on Land Bank which she referred to as “ä vote of confidence for the bank’s robust financial stability and resilience to withstand external and domestic economic headwinds.”
Credit ratings agency Fitch Ratings, Inc., in a report released on May 30, upgraded Landbank’s outlook to “stable,” alongside improved confidence in the country’s return to strong medium-term growth following the Covid-19 pandemic.
The report which also affirmed the bank’s Long-Term Issuer Default Ratings (IDRs) at ‘BBB’ and Government Support Rating (GSR) at ‘bbb’, considered Landbank’s “strategic and growing policy roles, 100% state ownership as well as its systemic importance as the largest state-owned bank in the country, with market share of about 14% of system assets.”
Fitch Ratings likewise gave consideration to the “state’s improving ability to support the bank, in times of need, as reflected in the revision of the sovereign rating Outlook to stable.”
“With solid state backing, we will intensify our support to the country’s priority programs and initiatives, towards expediting our complete resurgence from the global pandemic,” said Ortiz in a statement.
Landbank currently ranks second in the industry in terms of assets at P3.1 trillion and deposits at P2.8 trillion as of the first quarter of 2023. Its net income amounted to P10.8 billion in the first quarter of the year. Its capital also grew by 3.2% to P225.3 billion.
Presently, Landbank is the only bank present in all 82 provinces of the country, providing accessible products and services, particularly to underserved and remote communities.
Landbank is the Philippines’ biggest government-owned and controlled corporation and the largest credit provider to the agriculture sector, among other key economic sectors, reputedly with the financial capacity and resources to fully support the national government’s sustainable and inclusive development agenda. (With PNA)