Dominguez wants LandBank listed on PSE, ‘stupid’ charter amended

Finance Secretary Carlos Dominguez III on Tuesday announced plans to amend what he called the “stupid” charter of the Land Bank of the Philippines, and hinted on its possible listing on the Philippine Stock Exchange (PSE).

Speaking before the Financial Executives Institute of the Philippines (FINEX), Dominguez said the charter should be amended to welcome more types of investors moving forward.

“We are also proposing changes in the charter of LandBank which I don’t think can get passed in this administration,” he said during the FINEX’s general membership meeting.

“You know, LandBank has a stupid charter which says only cooperatives can invest in it. Come on, that’s really stupid, okay,” he elaborated.

Dominguez explained that among the changes being eyed is the increase in LandBank’s authorized capital stock to P800 billion from P200, and the increase in its paid-up capital to P200 billion.

LandBank is mandated to promote countryside development while remaining financially viable. It implements the comprehensive agrarian reform program (CARP), provides assistance to small farmers and fisherfolk, and serves as an official depository of government funds.

“Hopefully, hopefully, start listing LandBank in the stock market to the extent of about 20%, with no group holding more than 5% of LandBank, so that is the plan,” Dominguez continued.

LandBank ended 2021 with a net income of P21.75 billion, reflecting a 27% increase from P17.14 billion in 2020, which it attributed to the lower cost of funds and provision for losses.

Its total assets climbed 9.5% to P2.586 trillion from P2.362 trillion, driven by the expansion of deposits which grew by 8.39% to P2.269 trillion on the back of government and private account deposits.

Dominguez also expressed optimism that LandBank’s planned acquisition of a stake in the Philippine Dealing System (PDS) would be pushed.

“I hope so. It will not acquire 100%. I think the idea would be to acquire something like 49% and then list it in the market,” he said.

The finance secretary has long been pushing for the acquisition, given the delays in its planned merger with the Philippine Stock Exchange. — BM, GMA News