SUBMITTED BY: SUBMITTED TO:

Dexter D. Gumasing Dr. Ivy Lim

Antonio C. Rances Jr.

LANDBANK

The Land Bank of the Philippines is a government financial institution that strikes a balance in fulfilling its social mandate of promoting countryside development while remaining financially viable.

This dual function makes LANDBANK unique. The profits derived from its commercial banking operations are used to finance the Bank’s developmental programs and initiatives.

Over the years, LANDBANK has successfully managed this tough balancing act as evidenced by the continued expansion of its loan portfolio in favor of its priority sectors: the farmers and fisherfolk, small and medium enterprises and microenterprises, livelihood loans and agribusiness, agri-infrastructure and other agri- and environment-related projects, socialized housing, schools and hospitals.

Today, LANDBANK is by far the largest formal credit institution in the rural areas. Its credit delivery system is able to penetrate a substantial percentage of the country’s total number of municipalities.

LANDBANK also ranks among the top five commercial banks in the country in terms of deposits, assets, loans and capital.

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.

Stated-owned TYPE

Finance and Insurance INDUSTRY

Manila, Philippines (1963) FOUNDED

Manila, Philippines HEADQUARTERS

Margarito B. Teves, ChairmanGilda E. Pico, President and CEO

KEY PEOPLE

Financial Services PRODUCTS

P31.37 billion PHP (2009) REVENUE

P6.76 billion PHP (▲34%) (2009) [1]

NET INCOME

7,954 EMPLOYEES

www.landbank.com WEBSITE

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

OWNERSHIP

Government of the Philippines: 100%

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.

BRANCHES

LANDBANK has a total of 324 branches nationwide

VISION/MISSION

VISION

LANDBANK 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 supports for our farmers, fisher folks 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.

LANDBANK is committed in improving the lives of all its stakeholders and working with them to lead the country to economic prosperity.

MAJOR ROLES OF LBP

1. An implementing agency of CARP involved in land evaluation, compensation to owners of private agricultural lands, and collection of amortization from CARP farmer-beneficiaries;

2.Provition of credit assistance to small farmers and fisherfolk and ARBs;

3.An official depository of government funds; and

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

PRODUCTS AND SERVICES

DEPOSIT PRODUCTS

Regular Savings Account

An interest bearing peso-account which requires presentation of a passbook for deposit and withdrawal transactions.

Regular Current Account

A non-interest bearing peso account, also known as “Checking or Demand Deposit” Account wherein deposits are made over-the-counter whereas withdrawals are made through the issuance of a check.

Savings Account with ATM Access

An interest bearing peso account wherein withdrawal transactions are done via Automated Teller Machines (ATM) 24 hours a day, seven days a week. Deposit and withdrawal transactions may also be done over-the-counter but only during official banking hours/days.

Withdrawals may also be made at any Expressnet, Megalink and Bancnet ATMs.

Current Account with ATM Access

A non-interest bearing peso account, also known as “Checking or Demand Deposit” Account wherein deposit transactions are done over-the-counter, while withdrawal transactions are done via ATM.

Regular Peso E.A.S.Y. (Earning Access & Sure Yield) Check

An interest-bearing peso current account (IBCA) wherein deposits are made over-the-counter whereas withdrawals are made through the issuance of a check.

Peso E.A.S.Y. (Earning Access & Sure Yield) Check with ATM Access

An interest-bearing peso current account (IBCA) wherein deposits are made over-the-counter whereas withdrawals are made through the issuance of a check or through the ATM.

Regular Peso Time Deposit

A specific amount of funds in peso which earns interest at a pre-determined competitive rate for a fixed period of time/term with a “Certificate of Time Deposit” (CTD) as proof of deposit. This is offered to individuals and institutions who/which have peso denominated funds which may be locked-in with the Bank for at least thirty (30) days.

Easy Savings Plus (ESP)

ESP is a premium savings account which offers higher interest rates versus a regular savings account and are based on ADB levels.

High-Yield Savings Account (HYSA)

HYSA is a peso account wherein funds of a specific amount are given pre-determined competitive rates for a fixed term. A passbook serves as a proof of deposit. HYSA is offered to institutional clients.

U.S. Dollar Savings Account

An interest bearing dollar-account which requires presentation of a passbook for deposit and withdrawal transactions.

U.S. Dollar Time Deposit

A specific amount of funds in dollar which earns interest at a pre-determined competitive rate for a fixed period of time/term with a “Certificate of Time Deposit” (CTD) as proof of deposit.

LANDBANK E-$-P (Easy Dollar Pension)

An alternative payment scheme whereby the monthly pension/benefit of pensioners/beneficiaries of various US Federal agencies residing in the Philippines is directly credited to their savings account maintained with LANDBANK. The US pensioner/beneficiary has the option to open either an individual Peso Savings Account or individual Dollar Savings Account.

E-BANKING PRODUCTS

Access Retail Internet Banking

A retail internet banking (RIB) system that allows individual depositors to perform selected banking transactions and avail of other banking services using a personal computer with internet access.

weAccess Institutional Internet Banking

An internet banking facility developed for the Bank’s institutional clients; private corporations, small and medium enterprises (SMEs) and government entities, which allows selected banking transactions and services through the web. With this system, the client can initiate various transactions like real time and future dated fund transfers or online balance inquiries through computers with internet connection and a secure browser. Security and controls are built-in in the system.

Internet Corporate (i-Corp) Viewing Facility

A web-service available to corporate accounts that enables viewing of transactions and account details, deposit account balances and transaction history through the internet.

LANDBANK Cash Card

An electronic debit card that utilizes the stored value system and like the ATM Card, operates on magnetic stripe technology with PIN-based protocol. The Cash Card is a special product for institutional clients.

OFW Cash Card

An electronic debit card that facilitates cash transactions like balance inquiry and withdrawals via Automated Teller Machines (ATMs). A facility that OFWs can use as funds remittance mode using SMART mobile phones.

PHONE BANKING

LANDBANK PHONE ACCESS

The LANDBANK 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.

FEATURES:

Balance Inquiry

Inquire about your ATM savings, current account and cash card balances. Know your last credit card and debit transactions for your ATM savings and current account.

Request Statement by Fax

Request for a bank statement through fax. A service charge shall be automatically debited from your account for every transmittal.

Checkbook Requisition

Order a checkbook and follow-up status of request at the depository branch in three (3) weeks time. The checkbook cost shall be deducted from your account upon validation of your request.

Check Status Inquiry

Inquire about a specific check number issued and know if your check has been negotiated.

Hold an ATM / Cash Card Account

Block all transactions to your ATM/Cash card accounts automatically in case of a lost or stolen card. You may then re-apply for a new card at your depository branch.

Returned Check/s Inquiry

Inquire about the number and amount of returned checks for easier tracking of checks deposited to your account.

Change Telephone Access Number

Change your Telephone Access Number (T.A.N.) from time to time for control and security purposes.

Fund Transfer

Transfer funds from one account to another through the telephone. An acknowledgement number will be given as proof of your transaction.

Bills Payment

Pay your bills through the telephone. An acknowledgement number will be given as proof of your completed transaction.

LAWS AND RELATED ACTS

1. Republic Act 3844 7. Executive Order 229

2. Adoption of By-Laws and Creation of Board of Trustees

8. Republic Act 6657

3. Presidential Decree 27

9. Executive Order 405

4. Presidential Decree 251

10. Republic Act 7907

5. Reorganization 11. Executive Order 267

6. Executive Order 816 12. Increase of Authorized Capital

1.     Republic Act 3844 (Agricultural Land Reform Code) - 8 August 1963

Created the Land Bank of the Philippines (LBP) 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;

Authorized capitalization of 1.5 billion Php.  Initial capital of 200 million Php;

Members of the Board of Trustees o Chairman -  LBP President & CEO o 4 Members:

including the Head of Land Authority (now Dept. of Agrarian Reform)

one member elected by the holder of preferred shares

Under the supervision of the Bangko Sentral ng Pilipinas (BSP);

Tax exempt on all operations, holdings, equipment, property, income and earnings;

Exempted from cash or stock dividend payments to the National Government;

Agricultural Credit Administration (ACA) responsible for extending credit assistance to farmers cooperatives and directly to small farmers

2.     Adoption of By-Laws and Creation of Board of Trustees

Adopted the by-laws, established the first organizational chart and manual of operations in 1965;

Formed the Board of Trustees with the Secretary of Finance as chairman in 1966

3.     Presidential Decree 27   (Tenant Emancipation Act) - 21 October 1972

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;

Value of  land transferred to tenant-farmers at 2 1/2 times the average

Harvest of 3 normal crop years immediately preceding the promulgation of PD 27;

LBP to collect 15-year land amortizations from beneficiaries for the cost of the land plus 6% interest per annum

4.     Presidential Decree 251 (Revitalizing LANDBANK) - 21 July 1973

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;

Granted universal or expanded commercial banking powers to LBP and established LBP as the universal bank with a social mission of spurring countryside development;

o to cross-subsidize agrarian land transfer and loans to small farmers and fisherfolk;

Expanded LBP's powers to include lending to agricultural, industrial, home-building or home-financing projects and other productive enterprises;

o to ensure LBP's financial stability and sustainability;

Empowered LBP to grant loans to farmers cooperatives/associations to facilitate production, marketing of crops and acquisition of essential commodities;

LBP mandated to provide timely and adequate support in all phases involved in the execution of agrarian reform;

Increased authorized capitalization to 3 billion Php ; Increased the members of the Board of Directors to

seven (7): o Chairman  - Secretary of Finance o Vice-Chairman  -  LBP President o Members  (Ex-Officio) -  Secretary of Agrarian

Reform - Secretary of Labor  -                       

o Three Members  - elected annually Exempted from all national, provincial, municipal & city

taxes and assessments

5.     Reorganization - 1977

LBP formed three major sectors - Agrarian, Banking and Operations to strengthen operations and ensure long-term viability

6.     Executive Order 816 (Transfer of ACA to LBP) - 8 July 1982

To adopt an integrated approach in the provision of financial assistance to AR farmer-beneficiaries a single institution is preferred;

ACA was abolished and its functions (loans to small farmers) were transferred to LBP

7.     Executive Order 229 (CARL) - 22 July 1987

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;

Established the Agrarian Reform Fund (ARF) with an interim amount of 50 Php billion to cover the financing requirements of CARP with appropriations coming from the proceeds of the Asset Privatization Trust and the Presidential Commission on Good Government;

FBs to pay for lands acquired and redistributed by the government  in 30 equal annual amortizations at 6% p.a. with the first payment due one year after resale (annual amortization should not exceed 10% of the land's annual value of gross production);

LBP to provide assistance to landowners through: o investment information and counselling assistance o conversion and/or exchange of LBP Agrarian

Reform bonds to/from government stocks with government assets

o marketing of LBP Agrarian Reform bonds

8.     Republic Act 6657 (CARL) - 10 June 1988

Broadened the coverage of agrarian reform to include all public and private agricultural lands including other lands of the public domain suitable for agriculture;

Payment to landowners at 25% to 35% cash and the balance in 10-year Agrarian Reform bonds with a yield of 91-day T-bills;

Authorized LBP to collect from the FBs payment for lands awarded to  them in 30 annual amortizations at 6% per annum;

Established LBP as the financial intermediary of the CARP.

9.     Executive Order 405 (CARP Land Valuation)- 14 June 1990

Transferred the primary responsibility of determining land valuation and compensation for all lands covered under CARP from the DAR to the LBP;

Accelerated and streamlined certain procedures in land valuation and compensation;

LBP created regional Land Valuation and Landowners Compensation Offices (LVOs) to carry out land valuation and compensation

10. Republic Act 7907 (Amended LBP Charter) - 23 February 1995

Increased authorized capitalization to 9 billion Php ; Established LBP as an official government depository; Increased the members of the Board of Directors to

nine (9) composed of: o Chairman - Secretary of Finance o Vice- Chairman  - LBP President and CEO o Members:

Secretary of Agrarian Reform Secretary of Labor Secretary of Agriculture 2 Representatives of Agrarian Reform

Beneficiaries 2 Representatives from the Private Sector

11. Executive Order 267 (CARL) - 25 July 1995

National Government to issue Agrarian Reform (AR) bonds to be used by LBP for land transfer payments;

Segregation of the accounts of CARP-related transactions from the books of  LBP;

CARP accounts and AR bonds were previously part of LBP's books and adversely affected LBP's financial position (leverage and capital adequacy ratios)

12.  Increase of Authorized Capital - 25 August 1998

Authorized capitalization increased to 25 billion Php by the Department of Finance and the President of the Philippines

PROGRAMS

• LANDBANK and POEA seal agreement on Workers Education Program

LANDBANK recently signed a memorandum of agreement` with the Philippine Overseas Employment Administration (POEA), affirming its participation in the government’s Workers Education Program (WEP).The Workers Education Program is primarily geared atensuring that Overseas Filipino Workers (OFWs) are wellprepared prior to their departure and are educated on

the services available to them while they are working outside the country.At this year’s celebration of the “Migrant Workers Day”themed “Bayanihan para sa Kagalingan ng OFWs”, agreements were signed between POEA and various partners from the government and private sectors. It highlighted the role of these partnerships in promoting the protection and education of OFWs.Under the agreement signed by LANDBANK President and CEO Gilda Pico and POEA Administrator Jennifer Manalili last June 8, the Bank shall disseminate information on remittance services to OFWs through participation in the Pre-Employment OrientationSeminars (PEOS) and Pre-Departure Orientation Seminars (PDOS) conducted by POEA in Manila, regional centers and regional extension units.Also present during the MOA signing ceremony at the POEA office were: LANDBANK IBSS Head/EVP Cecile Borromeo, OFWRG Head/FVP Reevie Vergara, ORMSD Head/Ms. Carolyn Olfindo, and DRMD Head/Mr. James Figueras. DOLE Acting Labor Secretary LourdesTrasmonte represented DOLE Secretary Marianito Roque. LANDBANK’s remittance business is increasingly becoming a key business and growth driver for the Bank, having reported a 31 percent growth with a total of $772 million worth of remittancesin 2008.

• POLLUTION PREVENTION

LANDBANK and Partners conduct Manila Bay

Clean-up

August 14, 2010 - As part of its 47th year anniversary, the Land Bank of the Philippines (LANDBANK) once again led its partner organizations in the conduct of the Manila Bay Clean-up. More than 600 volunteers from LANDBANK, the

City Government of Manila, the Department of Environment and Natural Resources (DENR), the Manila Yacht Club, the Manila Broadcasting Company (MBC), the Manila Ocean Park, and the Diamond Hotel gathered for a clean-up operation of the Bay area along Roxas Boulevard. LANDBANK's scholars under the Tulong Aral Program also took part in the clean-up operation.

We welcome more participation as we recognize that a collective effort is key to the success of this program to rehabilitate the Manila Bay," LANDBANK president and CEO Gilda E. Pico said.

Since LANDBANK moved its Head Office to Malate, Manila, it has maintained the tradition of cleaning the Manila Bay every August. From a simple clean-up activity, LANDBANK expanded the program to enjoin other establishments along and around the Manila Bay.

Last year, LANDBANK and six organizations signed a Memorandum of Agreement (MOA) which formalized the Socially Responsible and United in Nurturing and Sustaining the Environment (SUNSET) Program. Under the MOA, LANDBANK and its program partners agreed to utilize their technical, financial and manpower resources in order to support the rehabilitation of the Manila Bay.

Trash racks have been installed in the outfalls of Padre Faura and Remedios Streets to stop solid wastes from being dumped into the Bay. Garbage boats are also deployed weekly to collect floating debris. To date, around 10,000 kilos of solid wastes have been collected and disposed of in proper dumpsites.

LANDBANK is also finalizing the procurement of an additional garbage boat to augment the equipment being used for clean-up operations.

• LANDBANK's Adopt-a-Watershed Program continues

As part of LANDBANK’s Adopt-a-Watershed Program,LANDBANK Head Office employeesconducted its 5th treeplanting activity at the Angat-Ipo Watershed in Norzagaray, Bulacan last June 19. Representatives from the Department of Environment and Natural Resources, LANDBANKOOP, Bulacan Lending Center and the Bank's official graphic designer, OP Communications, Inc. joined in the clean-up and the application of fertilizers to the trees that were previously planted over the four-hectare land adopted by the Bank since 2006. Jollibee also joined the activity.

CONCLUSION

Land Bank of the Philippines is a development oriented financial institution. The importance of LBP in the community, they deliver quality products and services that effectively addresses the needs and expectations of the clients. LBP is a government bank; it helps to finance the needs of the government. LBP is very important to the community, because it helps to finance the needs of the less fortunate people, and to finance the needs of the farmers. LBP is the agency of CARP involved in Land Evaluation, compensation to owners of private agricultural lands, and collection of amortizations from CARP farmer-beneficiaries. LBP provides credit assistance to small farmers and fisherfolk. It is the official depository of government funds and a government bank with social mandate to spur countryside development. LBP has dual function that makes them unique. The profits derived from its commercial banking operations are used to finance the Bank’s developmental programs and initiatives.