Landbank eyes single-digit income growth in 2026

MANILA, Philippines — State-run Land Bank of the Philippines is targeting modest profit growth this year despite fee waivers and a weak economic outlook, remaining cautiously optimistic for the second half.

LandBank president and CEO Lynette Ortiz said the bank still aims to grow by end-2026 after net income fell 4 percent to P24.2 billion in the first half.

READ: LandBank H1 profit falls despite strong loans

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“We’re hoping to eke out some growth by the end of the year. We’re making every effort to do that,” Ortiz said.

The results did not yet reflect the impact of waiving fees on person-to-person transfers via InstaPay and PESONet starting July 7.

“We are now trying to balance what we have lost in terms of income with our developmental mandate and our financial inclusion mandate,” Ortiz said, noting losses have yet to be quantified.

She said LandBank is expanding lending to farmers and micro, small and medium enterprises to support growth.

Ortiz cited a challenging backdrop, with economic growth slowing to 2.3 percent in the second quarter.

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READ: Landbank waives InstaPay, PESONet transfer fees

“We’re doing what we can with the factors and macroeconomic environment that we’re dealing with. it’s really all about efficient balance sheet management and managing our risk very cautiously,” she said.

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Looking ahead, the bank may face further pressure as it considers permanently waiving person-to-government transaction fees. It is also studying a similar move for government-to-government transactions. /pai