The Lending Center of the Landbank of the Philippines (LBP) is allocating bigger budget of P2 billion to its loan portfolio for Davao Region to serve another batch of small farmers and fishermen, large agribusinesses and even Local Government Units (LGUs).
LBP Vice President and Lending Center Head, Charlotte Conde said LBP’s Davao Lending Center caters to the large agri-businesses and these are corporations engaged in agriculture projects that include banana plantations, poultry and other agricultural related industries.
LBP Accounts Management Officer, Lilibeth Alvarez said roughly 60 per cent or P8 billion of the P12 billion total loan portfolio for Davao Region is being allocated to large enterprises. The loan portfolio is a combination of soft loans meaning lesser collateral and hard loans that are secured by real estate properties.
She said they plan to increase the portfolio by P2 billion to make the total budget to P14 billion by the end the year.
From the P12 billion, P300 million was dedicated for the small medium enterprises (SMEs).
“We would like to increase our portfolio to SMEs to 50 percent from P300 million to around P400 million. The P12 billion is the loan portfolio for the entire region for the agri-businesses,” Conde said on Wednesday’s Habi at Kape at Abreeza Mall.
Currently the Davao lending center has bigger exposure for agri-business because this is the target market of Landbank.
We focus our financing for agri-businesses,” she said.
Conde also announced they will be opening another lending center in Davao del Norte within the year and will be fully operational next year. She said they are eyeing to hit around P500 million for the new lending center.
“So that we will be able to expand our reach because right now with only 50 people handling the region it would be very difficult to reach all of these provinces,” she said.
With the center in Davao del Norte, Conde said they will be concentrating in Davao del Sur and Davao Occidental. She said the Davao del Norte lending center will cover Del Norte, Compostela Valley and Davao Oriental.
“Hopefully within the year we will open the new branch. Right now the lending operation of Landbank is centralized. We have branches that handle the depositing functions while we in our office handle purely lending operation. It just happened that right now for the entire Region 11 we have only one center,” she said.
The Davao center last year was able to serve about 780 loan portfolio-these are the profiles in the number of customers being assisted by Landbank lending.
“With the P12 billion loan portfolio there’s about 780 customers catered,” she said. Maya M. Padillo