Bank president Gilda E. Pico said they plan to offer the preferred shares first and then the dollar bonds under Tier 2 capital. "We are allowed to issue up to P5 billion (preferred shares) but we have to arrange procedures with the DoF (Department of Finance) and the interest rates."

For the dollar bonds, in local currency this will amount to about P5 billion, Pico said they are now negotiating with the arranger Deutsche Bank to issue it as a subordinated debt.

As of October Land Bank posted a net income of P2.62 billion, exceeding this year’s target of P2.5 billion. Pico said they raised the full-year income goal to P3 billion.

The ten-month income report is 36 percent higher than the P1.93 billion registered during the same period last year. Pico said that the improved net income was due primarily to the increase in revenues from loans, which rose 15 percent as well as prudent management of controllable expenses.

Also as of October, the GFI’s total assets reached P304 billion, nine percent higher than the P279 billion the same period in 2004.

In asset base, Land Bank is the third largest among the commercial banks. Deposits also continued to swell, totaling P238 billion from last year’s P207 billion. In the meantime bank capital rose 11 percent to P23 billion from P20.8 billion previously.

Land Bank reported that for the period, its non-performing loans decreased from P20.1 billion in October 2004 to P10.9 billion while its real and other properties owned or acquired or ROPOA decreased from P17.3 billion to P16.1 billion.