LAND BANK OF THE PHILIPPINES

Subject: Finmgt1 –

Schedule: 7:30-9:00 TTh

Instructor: Mrs. Joanne Precy Pasion

Submitted by:
Bayungasan, Dafny
Dontogan, Norie Joy
Malate, Monaliza
Narciza, Rachelle
Quirimo, Karen
Rosette, Mailyn
Urbano, Jemima

Date:

July 6, 2010
LAND BANK OF THE PHILIPPINES

OVERVIEW

It’s the largest formal credit institution in the rural areas, ranked among the top five
commercial banks in the country, a government financial institution, known to be the bank of the
countryside, one of the biggest governments owned and controlled corporation and much more.
These are just some of the very attractive yet factual description of the Land Bank of the
Philippines also known as LBP.

The Land Bank of the Philippines started back in the Marcos regime. It was created under
the R.A. 3844 known as Agrarian Reform Law enacted by Congress in 1963. Later, LBP
became the first universal bank by charter with expanded commercial banking powers to sustain
its social mission of spurring countryside development. The bank is directly under the
administrative supervision of the Department of Finance (DOF). As a bank, it is under the
regulatory supervision of BSP. It is audited by the Commission on Audit.

From its initial role as the financing arm of the agrarian reform, LANDBANK has
evolved into a full-service commercial bank. But the essence of its existence has not changed at
all – and that is to make the countryside continuously throb with life.

HISTORY

Land Bank of the Philippines was first established on August 8, 1963 through the
Republic Act 3844 (Agricultural Land Reform Code) with the initial capital of 200 million Php.
The creation of the Land Bank of the Philippines (LBP) was to finance the acquisition and
distribution of agricultural estates for division and resale to small landholders as well as the
purchase of the landholding by the agricultural lessee. It was under the supervision of the
Bangko Sentral ng Pilipinas (BSP). The bank was also exempted on all tax in operations,
holdings, equipment, property, income and earnings and it was also exempted from cash or stock
dividend payments to the National Government. It has the Agricultural Credit Administration
(ACA) which is responsible for extending credit assistance to farmer’s cooperatives and directly
to small farmers
The bank adopted its by-laws, established the first organizational chart and manual of
operations in 1965 and Formed the Board of Trustees with the Secretary of Finance as chairman
in 1966.

On 21 October 1972, the Presidential Decree 27 (Tenant Emancipation Act) was created for the
emancipation of tenant-farmers of private agricultural lands devoted to rice and corn under a
system of share-crop or lease-tenancy, whether classified as landed estate or not. LBP was to
collect 15-year land amortizations from beneficiaries for the cost of the land plus 6% interest per
annum

Because LBP was deficient and inadequate both in capitalization and in organization
structure to meet the implementation requirements of agrarian reform, the Bank was revitalized
through the Presidential Decree 251 (Revitalizing LANDBANK) created on 21 July 1973.
Through the decree, the LBP was granted universal or expanded commercial banking powers and
established LBP as the universal bank with a social mission of spurring countryside
development. This expanded LBP’s powers to include lending to agricultural, industrial, home-
building or home-financing projects and other productive enterprises; grant loans to farmers
cooperatives/associations to facilitate production, marketing of crops and acquisition of essential
commodities; increased authorized capitalization to 3 billion Php; increased the members of the
Board of Directors to seven (7); and exempted from all national, provincial, municipal & city
taxes and assessments
 In 1977, LBP formed three major sectors - Agrarian, Banking and Operations to
strengthen operations and ensure long-term viability. July 8, 1982, the role of ACA was
abolished and its functions (loans to small farmers) were transferred to LBP.

The Executive Order 229 (CARL) created on July 22, 1987. This created the Presidential
Agrarian Reform Council (PARC) as the highest policy-making and coordinating body of the
Comprehensive Agrarian Reform Program (CARP) to ensure timely and effective delivery of the
necessary support services. This give LBP the responsibilities to provide assistance to
landowners through investment information and counselling assistance, conversion and/or
exchange of LBP Agrarian Reform bonds to/from government stocks with government assets,
marketing of LBP Agrarian Reform bonds

The Republic Act 6657 (CARL) created June 10, 1988 authorized LBP to collect from
the FBs payment for lands awarded to them in 30 annual amortizations at 6% per annum and
established LBP as the financial intermediary of the CARP.

Executive Order 405 (CARP Land Valuation) of June 14, 1990 transferred the primary
responsibility of determining land valuation and compensation for all lands covered under CARP
from the DAR to the LBP so the bank created regional Land Valuation and Landowners
Compensation Offices (LVOs) to carry out land valuation and compensation

The Republic Act 7907 (Amended LBP Charter) created on 23 of February 1995
increased authorized capitalization to 9 billion Php, established LBP as an official government
depository and increased the members of the Board of Directors to nine (9)

Executive Order 267 (CARL) issued on July 25, 1995 made the National Government to
issue Agrarian Reform (AR) bonds to be used by LBP for land transfer payments. It also
segregated the accounts of CARP-related transactions from the books of LBP

August 25, 1998 the authorized capitalization increased to 25 billion Php by the
Department of Finance and the President of the Philippines.

VISION, MISSION, and OBJECTIVES

Vision:

Land bank shall be the dominant financial institution in countryside development, committed to
the highest standards of ethics and excellence in the service of the Filipino people.

Mission:

We shall continue to provide timely financial and technical support to our farmers, fisherfolk and
other priority sectors.

We shall deliver innovative products and services that are consonant with ecological
enhancement and effectively address our clients’ needs.

We shall embody professionalism and integrity, providing our employees with a work
environment that encourages growth and rewards excellence.

Objectives:

Land bank is committed to improving the lives of all its stakeholders and working with them to
lead the country to economic prosperity.
POWERS:
For the purpose of achieving its main objective, the Land Bank of the Philippines
which is corporate body is vested with certain powers, one which is:
“To hold, own, purchase, acquire, sell or otherwise invest, or reinvest of stocks, bonds or other
securities capable of giving the Bank a reasonably assured income sufficient to support its
financing activities and give its private stockholders a fair return on their holdings.”

MAJOR ROLES OF LBP

1. An implementing agency of CARP involved in land evaluation, compensation to owners of

private agricultural land, and collection of amortizations from CARP farmer-beneficiaries.

2. Provision of credit assistance to small farmers and fisher folk and ARBS.

3. An official depository of government funds.

4. A government bank with a social mandate to spur countryside development.

FUNCTIONS:
The Basic Function of the Land Bank of the Philippines has been redefined as that
providing:
A. Timely and adequate financial support in all phases involved in the execution of
needed agrarian reform. This was redesigned by the Bank into machinery that would
be form the new function. This function has 3 financial supports this are:
1. The transfer of new ownership of agricultural land covered by landlords to
tenant-farmers.
2. The effort to help the farmer-beneficiaries of agriculture to industry or other
productive endeavours.
3. The shift of landowner resources and efforts from agriculture to industry or
other productive endeavours.

PRODUCTS AND SERVICES

A. DEPOSIT PRODUCTS
• Regular Savings Account
• Regular Current Account
• Savings Account with ATM Access
• Current Account with ATM Access
• Regular Peso E.A.S.Y. (Earning Access & Sure Yield) Check
• Peso E.A.S.Y. (Earning Access & Sure Yield) Check with ATM Access
• Regular Peso Time Deposit
• High-Yield Savings Account (HYSA)
• U.S. Dollar Savings Account
• U.S. Dollar Time Deposit
• LANDBANK E-$-P (Easy Dollar Pension)
B. BANKING PRODUCTS
• iAccess Retail Internet Banking
• weAccess Institutional Internet Banking
• Internet Corporate (i-Corp) Viewing Facility
• LANDBANK Cash Card
• OFW Cash Card
C. FUND TRANSFER SERVICES
D. REMITTANCE SERVICES
E. E-TAX PAYMENT SYSTEM The e-tax System is LANDBANK’s participation to the
Electronic Filinf and Payment System (EFPS) of the Bureau of Internal Revenue (BIR). Under
the BIR EFPS, paperless filing of returns and payment of taxes is made possible through the
Internet.
F. LANDBANK VISA CARD. The LANDBANK Visa Card provides the means for the
cardholder to conveniently and safely make cashless purchases from Visa accredited merchants
and/or facilitate cash advances.

Types of Cards
• Local Classic
• Local Gold
• International Classic
• International Gold

G. E-CARD The E-Card is a multi-access, multi-purpose ATM card: ID card for members and
employees, express Payment System (EPS) facility (debit card), access to LBP's phone
banking and retail internet banking facilities.
F. PHONE BANKING
Land bank phone access aims to enhance our delivery of services to YOU, our valued clients,
by allowing you to make selected off-site bank transactions through the use of a telephone.
G. LBP LONG TERM TIME DEPOSIT “HARVEST 5”
TERM : 5 years and 1 day
Eligible Depositors : Individuals (single or joint accounts)
Amount of Placement : Minimum of 100,000.00
Interest Rate : *RATE FOR 6/16/2010 TO 6/28/2010 - 4.0000%
H. LOANS FOR COOPERATIVES (Coops)
I. COUNTRYSIDE LOAN FUND
The Countryside Loan Fund (CLF) is a wholesale credit facility from the World Bank. The
CLF is available through LANDBANK to Participating Financial Institutions (PFIs) for
relending to eligible sub-borrowers, i.e., private investment enterprises. There are three Programs
under the CLF, namely: CLF I, II and III.
J. TREASURY PRODUCTS
Treasury bills
Treasury bills are evidence of indebtedness issued by the National Government which
provides investors with instruments with the following features: market-oriented interest
rates, safety, marketability and short maturity.
Treasury bonds
Treasury Bonds are unconditional obligations of the sovereign state which mature beyond
one (1) year
• Basic features of land bank bonds
=is a certificate of indebtedness issued by the Land Bank of the Philippines as
payment for agricultural land transferred under the Land Reform Program of the
government.
4 Basic Features:
1. The bond matures in 25 years, redeemable prior to maturity at the option of the Bank.
2. It earns 6% interest a year payable every May 20 to November 20. It is fully
transferrable.
3. Land Bank bonds are fully secured by the assets of the Land Bank and are
guaranteed unconditionally by the Government of the Republic of the Philippines.
4. In addition to its protective features, the Land Bank sets a sinking fund for each
bond issued to assure redemption at maturity. Land Bank bonds are fully tax exempt
both as to principal and interest.
K. TRUST PRODUCTS AND SERVICES
• Unit Investment Trust Fund (UITF)
• ABS (Asset Backed Securitization) Trusteeship
• Individual/Corporate/Institutional Portfolio Management
• Custodial Services
• Employee Retirement Plan
• Escrow Agency
• Life Insurance Trust
• Mortgage Trust Indenture
• Personal Trust Services
• Receiving Bank Services

L. LAND TRANSFER PAYMENT

• Interest Payment
• Redemption Payment
• Transfer/Assignment- Refers to the act of transferring an inscribed or bearer bond to
constitute the assignee or transferee as the owner thereof.
• Exchange - Refers to the act of giving one bond in return for two or more bonds, or
giving two or more bonds in return for one bond, either inscribed or bearer, both cases
involving the same bondholder, for an equal amount in any authorized denomination.
• Conversion - Refers to the act of changing an inscribed bond with a bearer bond or a
bearer bond with an inscribed bond for an equal amount in any authorized denomination
with the same date of issue.
• Replacement - Issuance/Replacement of lost/mutilated or destroyed bond.

M. PROGRAMS FOR COUNTRYSIDE FINANCIAL INSTITUTIONS

A. Credit Programs
• Rediscounting Facilities for CFIs
• Calamity Assistance Programs for CFIs
• CFI Home Lending Program
• Unsecured Subordinated Debt Facility
B. Equity Investment Programs
• Second Tranche for LANDBANK’s New Capital Infusion for CFIs
• Equity Investment Program for Newly-Established and/or Existing Banks by
NGOs/Cooperatives

N. TODO UNLAD PROGRAM

TODO UNLAD is LANDBANK’s flagship program for countryside development.

Through its various lending programs and support services, TODO UNLAD links cooperatives,
local government units, private corporations/small and medium enterprises and non-government
organizations in specific areas around an integrated development project.

O. DEVELOPMENT ADVOCACY PROGRAM

The DEVELOPMENT ADVOCACY PROGRAM (DEVAD) is a new lending modality

which LANDBANK banks on the strength of market contracts purchase orders (P.O.),
receivables and other credit enhancement. It veers away from the rigors of traditional lending.

P. JATROPHA FINANCING PROGRAM

Jatropha, commonly known as “tuba-tuba” is a non-edible, fruit-bearing shrubs with high

oil content seeds which has a wide range of uses such as, pesticide, soap, fertilizer, oil for
lighting and fuel.
ORGANIZATIONAL STRUCTURE
MANAGEMENT
Board-Level Committee
List of Members (As of May 14, 2010)

CORPORATE GOVERNANCE COMMITTEE

1. DOF Secretary Gary B. Teves - Chairman
2. DOLE Secretary Marianito D. Roque
3. LBP President and CEO Gilda E. Pico
4. DAR Secretary Nasser C. Pangandaman
5. Director George J. Regalado

AUDIT COMMITTEE
1. Director George J. Regalado - Chairman
2. DOF Secretary Gary B. Teves - Vice Chairman
3. Director Ombre S. Hamsirani
4. DAR Secretary Nasser C. Pangandaman

RISK MANAGEMENT COMMITTEE

1. Director Cyril C. del Callar - Chairman
2. DOF Secretary Gary B. Teves - Vice Chairman
3. Director George J. Regalado
4. Director Ombre S. Hamsirani
5. DAR Secretary Nasser C. Pangandaman

TRUST COMMITTEE
1. DOLE Secretary Marianito D. Roque - Chairman
2. Director Cyril C. del Callar - Vice Chairman
3. LBP President and CEO Gilda E. Pico
4. DA Secretary Bernie G. Fondevilla
5. AVP Felix Manlangit - Trust Banking Group
BOARD OF DIRECTORS
• Hon. Gary B. Teves
• Pres. & CEO Gilda E. Pico
• Hon. Bernie G. Fondevilla
• Hon. Nasser Pangandaman
• Hon. Marianito D. Roque
• Mr. George J. Regalado
• Mr. Ombre S. Hamsirani
• Atty. Cyril C. del Callar
Management Team
• Pres. & CEO Gilda E. Pico
• EVP Wilfredo C. Maldia
• EVP Andres C. Sarmiento
• EVP Simeona S. Guevarra
• EVP Cecilia C. Borromeo
FINANCIAL HIGHLIGHTS
 STATEMENT OF CONDITION
As of 31 March
(In Million Pesos)
2010 2009 Inc / (Dec) % Growth
ASSETS
Cash and Due from Banks/PCHC 74,431.00 62,214.00 12,217.00 20%
Loan Portfolio (Net) 212,370.00 189,486.00 22,884.00 12%
Investments (Net) 206,693.00 144,307.00 62,386.00 43%
Bank Premises, Furniture and
4,808.00 4,931.00 -123.00 -2%
Equipment (Net)
Real & Other Properties
5,547.00 7,273.00 -1,726.00 -24%
Acquired (ROPA)
Other Assets (Net) 17,648.00 18,632.00 -984.00 -5%
TOTAL ASSETS 521,497.00 426,843.00 94,654.00 22.2%

LIABILITIES AND CAPITAL

Deposit Liabilities 407,833.00 325,938.00 81,895.00 25%
Bills Payable 30,986.00 34,939.00 -3,953.00 -11%
Unsecured Subordinated Debt 13,709.00 7,250.00 6,459.00 89%
Other Liabilities 19,021.00 19,981.00 -960.00 -5%
TOTAL LIABILITIES 471,549.00 388,108.00 83,441.00 21.5%

TOTAL CAPITAL 49,948.00 38,735.00 11,213.00 29%

TOTAL LIABILITIES AND
521,497.00 426,843.00 94,654.00 22.2%
CAPITAL
STATEMENT OF INCOME AND EXPENSE
For the three-month period Ended 31 March
(In Million Pesos)
2010 2009 Inc / (Dec) % Growth
EARNINGS
Loans 3,885.00 3,897.00 -12.00 -0.3%
Investments 3,766.00 2,207.00 1,559.00 71%
Foreign Exchange Profit / (Loss) 1,063.00 1,208.00 -145.00 -12%
Others 494.00 305.00 189.00 62%
TOTAL EARNINGS 9,208.00 7,617.00 1,591.00 20.9%

EXPENSES
Interest on Deposits 1,866.00 1,677.00 189.00 11%
Interest on Borrowed Funds 244.00 296.00 -52.00 -18%
Interest on Unsecured
249.00 131.00 118.00 90%
Subordinated Debt
Other Financial Expenses 13.00 00.00 13.00 126200%
Total Cost of Fund 2,371.00 2,104.00 267.00 13%
Provision for Probable Losses 20.00 218.00 -198.00 -91%
General & Administrative
4,256.00 3,562.00 694.00 19%
Expenses
TOTAL EXPENSES 6,648.00 5,884.00 764.00 13.0%
Net Income Before Provision for
2,561.00 1,733.00 828.00 48%
Income Tax
Less: Provision for / (Benefit
45.00 32.00 13.00 41%
from) Income Tax
NET INCOME AFTER
2,516.00 1,701.00 815.00 47.9%
INCOME TAX
SUBSIDIARIES AND AFFILIATES

Landbank is divided into the following subsidiaries and affiliates:

• LBP Countryside Development Foundation
• LBP Insurance Brokerage
• LBP Leasing Corporation
• LBP Realty Development Corporation
• Masaganang Sakahan, Inc.
• National Livelihood Support Fund
• People's Credit and Finance Corporation

FUNDING

• LBP is the main depository bank of the government. As such, a bulk of its funding
requirements comes from the government. Land Bank services the banking requirements
of the national government, local government units and government-owned and
controlled corporations. As of December 2004, 65 percent of the deposit portfolio (PhP
214.91 billion) comes from government while the rest was gathered from private
depositors.

COMPETITION

• LANDBANK competes against the major banks such as Metrobank, BPI, Banco de Oro
and Philippine National Bank. In rural areas, depending on the situation, it either
competes against or complements rural banks.
• On the other end of the spectrum, LANDBANK takes on a dual role with the
Development Bank of the Philippines, which is another government-owned bank. It
either competes against or works with DBP, depending on the situation involved.

AWARDS AND RECOGNITIONS

• 1988
o The 1988 Anvil Award of its Countryside Credit Delivery Program
• 1990
o The 1990 Catholic Mass Media Awards for Best Government Print Ad and in 1991
for Best Institutional TV ad
o The 1990 Top Lending Bank Award for Quedan Programs for Farmer Groups from
the Quedan-Guarantee Fund
• 1991
o The 1991 Katangian Award for TV ad “Fr. Cesar Vergara”
• 1992
o Named as the Most Outstanding Financial Institution in 1992 by the Guarantee Fund
for Small and Medium Enterprises
• 1993
o The 1993 Top Lending Bank Award from Gawad Quedancor
o The 1993 Anvil Award for Best Countryside Development Program for Gawad Pitak
o The 1993 Kabalikat Award from the Guarantee Fund for Small and Medium
Enterprises
o The 1993 YMCA Media Award from the YMCA of Manila
• 1994
o LandBank’s Countryside Loan Fund I (CLF), was cited by the Coordinating Council
of the Philippine Assistance Program as one of the “most effectively implemented
foreign-funded financial assistance programs in the country”
o Top accredited government securities dealer by the Bangko Sentral ng Pilipinas
 o One of the government’s top profit earners (by SEC)
• 1995
o Cited by the World Bank for disbursing CLF I in a record setting of two years, three
years ahead of the draw down schedule.
o Top accredited government securities dealer by the BSP (2nd time)
• 1996
o The 1996 Anvil Award of Excellence for External Publication (calendar category).
o The 1996 Gawad Oscar M. Florendo Award as the most outstanding PR tool under
the print category
o One of the five outstanding Accredited Financial Institutions by the Guarantee Fund
for Small and Medium Enterprises
o Gil Puyat Award for entrepreneurship in the 1996 YMCA Citizens Award
o World Bank and NEDA citation for its impressive implementation of the Second
Rural Finance Project, or the CLF II, six months after it started
• 1997
o Top five government securities eligible dealers by the Bureau of Treasury
o First recipient of the Philippine Association of National Advertisers (PANA) values
award for LANDBANK’s Bagong Pinoy TV Ads
o Again cited by World Bank and NEDA for its Countryside Loan Fund II which is
considered as the “fastest-moving program among the 27 ongoing projects of the
World Bank,”
• 1999
o PRSP’s Anvil Award of Excellence (1999 calendar featuring centennial trees with the
theme: “Buhay na Puno, Puno ng Buhay”)
o PROP’s Gawad Oscar Florendo – Outstanding Public Information (Print Category)
• 2001
o PRSP’s Anvil Award of Merit (2001 calendar featuring Sanctuaries: Protected Areas
in the Philippines)
o PROP’s Gawad Oscar Florendo Award of Excellence

• 2003-2006
o CY 2003 Top Grosser Award from the Bureau of Internal Revenue for
o Anvil Award of Merit, 39 th Anvil Awards of the Public Relations Society of the
Philippines for 2002 Annual Report (March 2004)
o Anvil Award of Merit, 39 th Anvil Awards of the Public Relations Society of the
Philippines for the book “Profiles of Success: Stories of Gawad PITAK Winners”
(March 2004)
o Special Citation from the Philippine Health Insurance Corporation for posting the
highest collections of PhilHealth premiums since it was accredited by the agency in
1997 (February 2005)
o Anvil Award of Merit from the Public Relations Society of the Philippines for
LANDBANK's 2006 Wall Calendar entitled "The Philippine Markets"
o Anvil Award of Merit given by the PRSP for LANDBANK’s 2004 Calendar with a
theme “Philippine Endangered Species”
o Partnership Award given by the Development Bank of the Philippines for
LANDBANK’s active participation and role in securities underwriting and issue
management and support to DBP’s investment banking business
o Top state-owned financial institution in corporate governance by the Institute of
Corporate Directors
o Five Star Rating by the Department of Energy for being among the top contributors
in the government’s energy saving program
o Cited as “Outstanding Government Development Bank” during the 21st Annual
Parangal ng Bayan Excellence Awards by the Parangal ng Bayan Foundation, Inc.
o First Place in the top performing Government Securities Eligible Dealers for the
combined Primary and Secondary Markets,
• 2007
 o First and Second Place in the top performing Government Securities Eligible Dealers
for the combined Primary and Secondary Markets awarded by the Bureau of Treasury
for the period October 2006 to September 2007
o Cited by the DENR as among its active partner institutions in undertaking
environmental activities particularly for LANDBANK’s efforts to rehabilitate and
preserve six water sheds in the country
o “Gawad Barya Award” given by the Bangko Sentral ng Pilipinas (BSP) for being the
top contributor to the “Tulong Barya Para sa Eskwela” campaign, a joint project of
BSP and DepEd.
o Four Star rating given by the Department of Social Welfare and Development for
LANDBANK’s Day Care Center
o “Blue Rating” given by the Laguna Lake Development Authority (LLDA) for
LANDBANK’s adherence to the standards of LLDA under the 2nd cycle of the
Public Disclosure Program for Industries within the Laguna de Bay Region.
o Certification for ISO 14001:2004 given by the Anglo Japanese Registrars, Inc.
version after passing a Stage II audit of the Bank’s Environmental Management
System
o Gold Quill award given by the International Association of Business Communicators
for LANDBANK’s 2005 Annual Report with a theme ”A Passion for the
Countryside"
o Adjudged as the Most “Disabled-friendly” Bank in the National Capital Region by
the National Council for the Welfare of Disabled Persons
• 2008
o Cited by President Gloria Macapagal Arroyo for its achievement in institutionalizing
a Quality Management System (QMS) and securing ISO 9001:2000 certificates for its
trust banking and wholesale lending operations
o Anvil Award of Excellence given by the Public Relations Society of the Philippines
for LANDBANK’s 2007 Calendar with a theme “Doing our Share in Protecting the
Country’s Watersheds”
o Anvil Award of Merit given by the Public Relations Society of the Philippines for
LANDBANK’s 2006 Annual Report with a theme “Setting Off Ripples for
Countryside Progress”
o Given a “Satisfactory” rating by Department of Financial Institution in California for
the audit made at LBP Remittance Co. in Panorama City, California.
o LANDBANK was conferred as the Best Paying Commercial Bank during the 2008
Balikat ng Bayan Award given by the Social Security System on its 51st
Anniversary.
o The Environmental Management System (EMS) at the LANDBANK Plaza and the
10 pilot NCR Branches were conferred with the ISO 14001:2004 certificates by the
AJA Registrars, Inc.
o LANDBANK received a plaque of recognition from the Development Academy of
the Philippines (DAP) for being one of its founding institutions during its 35th
anniversary celebration last October 17, 2008.
o LANDBANK sa DZRH at Radyo Natin received a 2008 Philippine Quill Merit
Award conferred by the International Association of Business Communicators
(IABC) last November 7, 2008.
• 2009
o Cited by PhilHealth as one of its top collecting accredited banks in Region III last
February 25, 2009.
o Conferred the Anvil Awards of Merit for the 2008 Calendar entitled “Festivals of
Bountiful Harvest” and “Profiles of Success 2” during the 44th Anvil Awards
organized by the Public Relations Society of the Philippines.
o Recognized as the first among government-owned and controlled corporations and
government financial institutions in terms of the Integrated Development Action Plan
implementation for the first semester 2009.
• 2010
o Conferred the Anvil Awards of Merit for the 2009 Calendar entitled “Migratory Birds
in Philippine Coastal Areas” during the 45th Anvil Awards organize by the Public
Relations Society of the Philippines.
 o LANDBANK President and CEO Gilda E. Pico was awarded the “Communication
Excellence in Organizations” CEO Excel Award for 2010 by the International
Association for Business Communicators (IABC) last March.
o LANDBANK was cited as the fourth top brokering participant for its trades in
government securities in 2009 by the Philippine Dealing and Exchange Corporation
(PDEx).

SOCIAL RESPONSIBILITY

In pursuit of its role as the dominant financial institution in countryside development,

LANDBANK shall adhere and actively promote environmental protection and sustainable
development by incorporating effective environmental management practices in all its agrarian
and banking operations, services and decisions.
Towards this end, LANDBANK shall:
Compliance
• Comply with applicable environmental laws, regulations and covenants that it subscribes
to;
Pollution Prevention
• Implement effective pollution control and waste management programs, practice
conservation of natural resources and conduct appropriate environmental risk assessment
and management;
Communication
• Enjoin its employees to be aware and be actively involved in the implementation of its
Environmental Management System (EMS);
• Inform and influence its stakeholders including its clients, suppliers and business partners
to align with the Bank’s environmental management programs in their business
operations;
Continual Improvement
• Commit to continuously review and improve its environmental programs in response to
changing needs and conditions;

NEWS ARTICLES

LANDBANK earns ISO 9001:2008 QMS certifications

The Land Bank of the Philippines (LANDBANK) was recently conferred two ISO 9001:2008
certifications: one for the lending and financial services operations of its Public Sector
Department and the other for the loan operations of the Pampanga Lending Center. The ISO
9001:2008 Quality Management System (QMS) provides a comprehensive framework on which
to build processes that help ensure that key business objectives are achieved. It is a guide to
achieve and continually improve customer satisfaction.

The said certifications are testament of the Bank?s sound management practices through its
QMS. LANDBANK established QMS in its core banking processes to ensure consistent quality
in customer service delivery and remain competitive and profitable in the long term.

"This certification affirms our relentless commitment to institutionalize continual improvement

of our performance and to understand and address our customers, needs and expectations. We
will continue to expand the coverage of our QMS and replicate best practices to other units of
the Bank," LANDBANK President and CEO Gilda E. Pico said.

Pico also disclosed that just recently, the branch banking operations of the LANDBANK-PEZA
Roxas Boulevard Branch has been recommended for ISO 9001:2008 QMS certification after
successfully passing the Stage 2 audit conducted by Certification International Philippines, Inc.

In 2007, LANDBANK was awarded a Certificate of Registration to ISO 9001:2000 by the

Governing Board of Certification International UK Ltd. on LANDBANK?s wholesale
commercial lending operations and trust banking and asset management services operations.
LANDBANK remains top lender in SULONG supporting 273,000 jobs nationwide in 2009
More than 273,000 jobs nationwide have been supported with LANDBANK's contributions to the
government's SME Unified Lending Opportunities for National Growth (SULONG) which
totaled P21.8 billion in December 2009. This includes jobs in manufacturing, processing,
services, trading and merchandising.

LANDBANK remains as the top contributor among the government financial institutions since
the program was launched by the national government in 2003 in support of the SME sector.

"We have sustained our efforts to keep credit accessible and affordable to more SMEs because
their operation is vital to the growth of our economy. With enough funding, more livelihood and
job opportunities are created which ultimately redounds to greater productivity and improved life
quality for more Filipino families," LANDBANK president and CEO Gilda E. Pico said.

Among the highly-successful SMEs financed by LANDBANK is Ms. Eduarda "Eden" Ayo of
Capuy in Sorsogon City. Ms. Ayo is a rice and copra trader and dealer of palay seeds, pesticides
and fertilizers who employs around 300 regular workers in her family farm and some 80 workers
in their hog-raising and breeding business. She was named as the "Entrepreneur of the Year" by
LANDBANK under its Gawad Entrepreneur Award in 2009. In the same year, she was also given
special citation by Ernst & Young in the same category.

Ms. Vicenta Orodio, owner of the Orodio Junkshop in Pasong Tamo, Makati, is another
entrepreneur being assisted by LANDBANK. She started her business in 1964 with only two
carts to buy and collect empty bottles of sauces and liquors, scrap metals and old newspapers
around town. Soon her neighbors enjoyed gainful livelihood as her business grew and prospered
to become among the major suppliers of recyclable materials to various manufacturing
companies. In 2008, LANDBANK gave the Gawad Entrepreneur Award in the non agri-based
category to Orodio Junkshop especially for its contribution in employment generation and
community development.

LANDBANK also supports the General de Jesus College, Inc. (GJC) in San Isidro, Nueva Ecija.
The private secondary school was founded in 1946 by educators who responded to the call of
their youth for higher education during the post-war period. In 1978, they started offering college
education on a rented building. Today, GJC has an average population of 2,500 students and
maintains eight school buildings, 59 classrooms, a gymnasium, administrative office and
computer laboratories. It is the only school in Nueva Ecija with two programs - BS Secondary
Education and High Schooll, accredited by the Federation of Accrediting Agencies of the
Philippines. GJC received a special citation as SME Maka-kalikasan under the Gawad
Entrepreneur of LANDBANK in 2009.
LANDBANK and PETRON prepare scholars under the Tulong Aral High School
Scholarship Program
The Land Bank of the Philippines (LANDBANK), Petron Foundation, Inc. (PETRON) and the
Philippine Business for Social Progress (PBSP) recently re-oriented the 98 scholars under the
Tulong Aral High School Scholarship program in preparation for their third year education in
school year 2010-2011.

The high school student beneficiaries who are currently receiving financial support from
LANDBANK were among the graduates of Tulong Aral ng Petron program for high school level.
Since 2008, LANDBANK has helped send these children to high school for free. They came from
indigent families in urban poor communities identified by the Department of Social Welfare and
Development (DSWD).

LANDBANK President and CEO Gilda E. Pico emphasized in her opening remarks that
educating the youth is vital to the socio-economic progress of every country. "We value with
utmost priority the education of our youth as their knowledge and skills will contribute largely to
the growth and prosperity of the country," Pico explains.

The program, which aims to provide high school education to poor but deserving students in
Metro Manila, is a collective effort of the PETRON, LANDBANK, PBSP, DSWD, Department
of Education (DepEd) and other private organizations.

The Petron Foundation, as the lead agency, developed the conceptual framework for the
scholarship program while LANDBANK and PBSP participate in the implementation, monitoring
and evaluation of the program. LANDBANK and its employees contributed P4 million to the
program which are being released in tranches of P1 million a year. The DepEd established the
data base of scholars and coordinates with concerned schools while the DSWD assists
LANDBANK and Petron in selecting the program beneficiaries particularly in determining the
income level of the families of the scholars.

Apart from financial support, LANDBANK also participates in providing workshops and study
tours to the students in coordination with the program partners.

SOURCES:

https://www.landbank.com/index.asp
http://en.wikipedia.org/wiki/Land_Bank_of_the_Philippines
http://www.fao.org/ag/ags/agsm/banks/banks/philipp.htm
http://www.chanrobles.com/legal3lbp.html
http://www.bwtp.org/arcm/Philippines/II_Organisations/Donor_Investors/LandBankoft
hePhilippines.htm