Land Bank of the Philippines (LBP) posted a year-on-year income rise of 35 percent in 2009 to P6.76 billion from higher deposits and other sources of income.

For this year, Land Bank President and CEO Gilda E. Pico is confident the bank will report P7.2 billion net income.

Land Bank, a government financial institution and one of the country’s top five banks, has been consistently improving its profitability, said Pico, because of its higher income on loans and investments, and deposit portfolio management.

While Land Bank has an approval to issue as much as $100 million in hybrid tier 1 notes, the bank is under no pressure to do it since its capital to risks ratio still stands at 17.7 percent, well above the regulatory requirement of 10 percent.

In a statement Monday, Land Bank said the 2009 income was the highest net income recorded in its 46-year history. Return on Equity or ROE also reached a high 15.7 percent in 2009.

“Amidst the economic challenges and the spate of calamities that hit the country, 2009 proved to be another banner year for Land Bank,” said Pico. “With prudent management and a clear institutional focus, we were able to register a solid performance last year.”