LAND BANK of the Philippines (LANDBANK) was named the top government-owned and -controlled corporation (GOCC) in terms of good governance practices last year, the Governance Commission for GOCCs (GCG) said.
The GCG’s corporate governance scorecard gave LANDBANK the top rating of 102.5 for 2022.
The scorecard is used to “assesses the corporate governance initiatives (e.g., stakeholder relationships, disclosure and transparency, and responsibilities of the board) of GOCCs through a methodology benchmarked against international practices,” according to the GCG.
LANDBANK was followed by the Social Security System (102.19); Government Service Insurance System (102.08); and Development Bank of the Philippines (100).
Also among the ranking GOCCs were the Bases Conversion and Development Authority and Clark Development Corp. (99); John Hay Management Corp. (98); LBP Insurance Brokerage, Inc. (97.92); Philippine Reclamation Authority (97.5); Cebu Port Authority, National Home Mortgage Finance Corp., and LBP Resources and Development Corp. (96.5); and the National Electrification Administration (95.94).
LANDBANK President Lynette V. Ortiz said the bank plans to maintain momentum by taking a balanced approach to risk management and providing support to priority sectors.
“We really are looking to properly balance risk-taking and risk management and we’re very much focused on the priority lending centers. Our mandate of course is to support the entire agri value chain but at the same time look at the sustainability projects, infrastructure projects, all in aid of the development of our country,” she told reporters on Monday.
Ms. Ortiz also said the bank will likely exceed its P35-billion earnings target this year.
The bank reported that net profit rose 24% to P31.85 billion in the first nine months.
“We will be exceeding the target. I’m hoping we will really surprise everybody with our results. There’s still a month and a half left, we’re really pushing hard to do the best we can still, but we’re looking to surprise on the upside,” Ms. Ortiz said.
“I think we’ve been able to deploy our capital very well to projects that are providing us with sufficient returns. On top of the lending, it’s the proper management of our balance sheet (and) our discipline in costs,” she added.
Meanwhile, Ms. Ortiz said LANDBANK has met with the newly appointed Maharlika Investment Corp. (MIC) president and chief executive Rafael Jose D. Consing, Jr. to discuss strategy moving forward.
“We’ve actually met with the president of the MIC, to basically get a good sense of his strategy and how he (plans to proceed). Clearly top of his agenda is to make sure the board is properly constituted; second, to get his top team in place so we can all meet and start the hard work of… deploying the capital,” she said.
“More or less the sectors he intends to focus on (are) very much aligned and in sync with LANDBANK’s own mandate,” she added.
At his first briefing as MIC head last week, Mr. Consing said the fund will prioritize tourism infrastructure, energy security, and digital infrastructure.
Ms. Ortiz said she is confident in Mr. Consing’s ability to steer the fund.
“I have the utmost respect (for) his capabilities, skillset, professionalism and integrity. I’ve worked with him for more than a decade, so I’m very hopeful and excited that the MIC will fulfill what it’s set out to do,” she added.
Under the law creating the MIF, LANDBANK and the DBP are required to contribute P50 billion and P25 billion, respectively, to the initial capital of the fund. The MIC has authorized capital stock of P500 billion. — Luisa Maria Jacinta C. Jocson