35th
ADFIAP
Annual Meeting 2012
“Financing SMEs and Cooperatives:
Fortifying Sustainable
Development in the Philippines”
MR. JULIO D. CLIMACO, JR.
Senior Vice President for Strategic Planning
LAND BANK OF THE PHILIPPINES
BACKGROUND ON LANDBANK
• 100% government-owned universal bank created in 1963
• Principal depository bank of the Philippine government
• 327 branches and 1,000 ATMs nationwide as of March 2012
• Largest provider of credit to farmers cooperatives, MSMEs,
local government units and rural banks
• Obtained a CAMELS Rating of “4” in April 2011. Highest
rating granted by Bangko Sentral to a Philippine bank.
Second bank to attain a rating of 4.
BACKGROUND ON LANDBANK
• Fourth largest in the Philippine banking industry as of
31 December 2011 in terms of:
Assets
Deposits
Loans
Net Income
-
USD 14.75 Billion
USD 11.71 Billion
USD 7.21 Billion
USD 208 Million
• High Return on Equity of 15.4% in 2011 and low NPL
ratio of 2.1%.
LBP’s INTEGRATED COUNTRYSIDE DEVELOPMENT FRAMEWORK
• Local Government Units
• Rural Banks
LBP
• Small Farmers and Fisherfolk
Cooperatives
• Agrarian Reform Beneficiaries
• Microenterprises and SMEs
• Agribusiness Enterprises
• Agri-Processors
LBP LOANS OUTSTANDING TO
MICROENTERPRISES AND SMEs
(In USD Millions)
LBP LOANS OUTSTANDING TO SMALL
FARMERS AND FISHERFOLK
(In USD Millions)
NUMBER OF SMALL FARMERS AND FISHERFOLK
BENEFICIARIES OF LBP LOAN RELEASES
2007 to 2011 – 3.12 M
LBP LOANS TO LOCAL GOVERNMENT UNITS
(In USD Millions)
LBP FORTIFIES ROLE AS THE BANK
FOR LOCAL GOVERNMENT UNITs
• LBP is the largest provider of development finance to the
provinces, cities and municipalities; and 854 LGUs currently have
loans with LBP. About 50% of the country’s LGUs are loan clients
of the Bank.
• LBP is also the depository bank of 97% or 1,665 of the country’s
1,714 LGUs.
• Loans to LGUs have been on a sustained uptrend and increased to
USD 1.057 billion in 2011.
• Of the USD 1.057 billion LGU loans as of 2011, USD 748 million
were loans for agri-infrastructure projects, USD 102 million for
schools and hospitals, and USD 207 million for other
developmental projects.
THE CONCRETE-FRAMED 2-STOREY MUNICIPAL HALL
SOUTH UBIAN, TAWI-TAWI
ROCK CAUSEWAY AND EXTENDED PIER
SOUTH UBIAN, TAWI-TAWI PROVINCE
SPEEDBOAT (POWERED BY TWO 250-HP OUTBOARD ENGINES)
SOUTH UBIAN, TAWI-TAWI PROVINCE
FOOD SUPPLY CHAIN PROGRAM
• LANDBANK, in partnership with the Department of Agriculture (DA) and the
Department of Finance (DOF), launched the Food Supply Chain Program in
October 2010
• It aims to increase farmers’ income by way of providing necessary financial
and technical support along the value-added chain of a commodity or industry.
• The program provides the following:
 Credit assistance to key players in the food system such as agricultural producers, service
providers, consolidators, processors and various market players;
 Market linkages between agricultural producers and processors; and
 Capacity-building support to strengthen farmers’ organizations and enable them to meet
product requirements of anchor firms.
• As of December 2011, 140 projects (involving 140 anchor firms and 381 coops
and SMEs) have been enrolled in the program. LBP has released USD 210
million in loans in 2011. These loans have benefitted 78,050 farmers and
fisherfolk.
UPDATE ON FOOD SUPPLY CHAIN PROGRAM
December 2011
Particulars
Total
Number of Projects
140
Number of Anchor Firms
140
Number of Coop/FO/NGO Producers
381
Number of Farmers Assisted
Loan Releases
78,050
USD 210 M
RICE PRODUCTIVITY PROGRAM –
SUPPORT TO PHILIPPINE GOVERNMENT’S
SELF-SUFFICIENCY TARGET
1. A special program where LANDBANK provides credit assistance
to small palay farmers.
2. Program supports the government’s efforts to increase rice
production and achieve food self-sufficiency by providing the
following:
 credit to conduits such as farmers’ cooperatives, irrigators’ associations,
and countryside financial institutions (CFIs); and
 credit enhancements (such as market contracts, crop insurance and
guarantees)
3. Total releases as of 31 December 2011 amounted to USD 359
Million benefiting 517,835 farmers.
SIKAT SAKA PROGRAM
(FOR RICE PRODUCTION)
 In January 2012 LANDBANK forged a Partnership Agreement with
Department of Agriculture for the implementation of the Sikat Saka
Program, a lending program which will provide small palay farmers direct
access to credit.
 LANDBANK and the Department of Agriculture (DA) initially earmarked
USD 4.7 million each for loans to palay farmers in four major rice
producing provinces – Isabela, Nueva Ecija, Iloilo and North Cotabato.
 LANDBANK shall provide credit assistance and manpower to complement,
manage and monitor the program implementation. The loan proceeds of
the farmers will be credited to their special LANDBANK ATM card.
 The DA shall take the lead in the program implementation and also
provide loan funds, assured market, and irrigation and extension services.