Landbank of the Philippines

OFFICIAL DEPOSITORY BANK OF THE PHILIPPINES

• 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.

ABOUT land bank of the philippines

• 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.


• 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.


CORPORATE PROFILE(As of June 2009)

• NATIONALITY: 100% Filipino Ownership

• FOUNDING DATE: August 8, 1963

• OWNERSHIP: GOVERNMENT OF THE PHILIPPINES, 100% National

Gov't P11.97 Billion Common Shares• PRINCIPAL ACTIVITY:

Specialized Government Bank with universal banking license

• NETWORK: 343 Branches/Bank Units; 818 ATMs

HISTORY

1. Republic Act 3844

7. Executive Order 229

2. Adoption of By-Laws and Creation

of Board of Trustees


3. Presidential Decree 27


4. Presidential Decree 251


5. Reorganization



12. Increase of Authorized

Capital

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 – Chairman - LBP President & CEO – 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

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

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

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; – 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; – 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): – Chairman - Secretary of Finance – Vice-Chairman - LBP President –Members (Ex-Officio) - Secretary of

Agrarian Reform - Secretary of Labor -

– Three Members - elected annually

• Exempted from all national, provincial, municipal & city taxes and assessments

Reorganization - 1977

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

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

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: – investment information and counselling assistance – conversion and/or exchange of LBP Agrarian Reform

bonds to/from government stocks with government assets

–marketing of LBP Agrarian Reform bonds

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

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

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: – Chairman - Secretary of Finance – Vice- Chairman - LBP President and CEO – Members:

• Secretary of Agrarian Reform • Secretary of Labor • Secretary of Agriculture • 2 Representatives of Agrarian Reform Beneficiaries • 2 Representatives from the Private Sector

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)

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

Corporate Environmental Policy

• In pursuit of its role as the dominant financial institution in countryside development, LANDBANK shall adhere and actively promote environmental protection and sustainable development by incorporating effective environmental management practices in all its agrarian and banking operations, services and decisions.

• Towards this end, LANDBANK shall:

Compliance

• Comply with applicable environmental laws, regulations and

covenants that it subscribes to;

Pollution Prevention

• Implement effective pollution control and waste management programs, practice conservation of natural resources and conduct appropriate environmental risk assessment and management

Communication

• Enjoin its employees to be aware and be actively involved in the implementation of its Environmental Management System (EMS);

• Inform and influence its stakeholders including its clients, suppliers and business partners to align with the Bank’s environmental management programs in their business operations;

Continual Improvement

• Commit to continuously review and improve its environmental programs in response to changing needs and conditions;

BOARD OF DIRECTORS

Hon. Gary B. Teves ChairmanSecretary - Department of Finance

Gary B. Teves is the former president and CEO of LANDBANK and Vice-Chairman of the Bank’s Board of Directors prior to his appointment as Secretary of the Department of Finance. During his term (Sept. 2000-July 2005), the bank’s financial performance improved dramatically, recording historic high net incomes. He has also successfully steered the bank back to its original mandate of spurring development and alleviating poverty in the countryside. Before his appointment at LANDBANK, he was the Representative of Negros Oriental for three consecutive terms and authored significant legislations on trade, investment, fiscal and financial reforms, and countryside development. He also served as the private sector representative of the Economic Coordinating Council, the Executive Branch’s highest policy-making body on economic issues.

Ms. Gilda E. PicoVice-ChairpersonPresident and CEO

• Gilda E. Pico became a full-fledge LANDBANK president and CEO and vice-chairperson of the Bank’s Board of Directors in November 2006. Prior to this, Ms. Pico was appointed as the Bank’s acting president and CEO upon her predecessor’s assumption to duty as Secretary of Finance, Hon. Gary B. Teves. She is regarded as one of the pillars of LANDBANK, having contributed in making it the country’s premier financial institution today.

• Her 27 years of service with LANDBANK were replete with major accomplishments in the fields of audit, controllership, operations, treasury and banking. After joining LANDBANK in 1981 as assistant vice president, she continued to rise from the ranks and handled significant functions of the Bank. This gave her a full grasp of the ins and outs of LANDBANK’s overall operations.

• A magna cum laude from the College of Holy Spirit, her formal training as a Certified Public Accountant enabled her to effectively enact and implement the needed reforms in operations resource management. She was also key to formulating and implementing significant policies related to the Bank’s role in the Comprehensive Agrarian Reform Program.

• Among her noted accomplishments is devising market strategies, planning and policy-making for the profitable operation of the Bank’s 484 branches and field units nationwide. She also authored fundamental policies vital to the effective implementation of the Bank’s credit and support programs to its priority sectors namely the small farmers and fisherfolk cooperatives, micro and small and medium scale enterprises, rural banks and local government units.

Hon. Arthur C. YapSecretary - Department of Agriculture

Hon. Arthur C. Yap is the Secretary of Agriculture and is one of the youngest to be appointed to the Cabinet of President Gloria Macapagal Arroyo in August 2004. He then became Presidential Adviser for Job Creation then as Director General of the Presidential Management Staff before being reappointed as Agriculture Secretary in October 2006. A lawyer by profession, he first entered government service in August 2001 as President and CEO of the Philippine International Trading Corporation (PITC). Under his stewardship, PITC’s multi-million deficit was overturned, making it earn from its operations for the first time in 10 years. He was later appointed as the Administrator of the National Food Authority and as the Chairman of the Food Terminal, Inc. and then as DA Undersecretary for Luzon Operations in concurrent capacity. In his two years of stewardship at the NFA, he is recognized for bringing back the NFA to the forefront of the government’s food self-sufficiency program.

Hon. Nasser C. PangandamanSecretary - Department of Agrarian Reform

assumed his post as Secretary of the Department of Agrarian Reform (DAR) in July 2005. Prior to this, he served as DAR Undersecretary and was appointed Regional Chief of Staff of the Office of the Regional Governor for the Autonomous Region of Muslim Mindanao (ARMM). Secretary Pangandaman headed the task force created by former President Fidel V. Ramos to fast track the flagship projects for ARMM. He represented the government in various international functions such as the delegation in the ILO Conference on Indigenous People held in Thailand and the organization of BIMP-EAGA held in Indonesia in 1994. He was a member of the GRP Panel in the 7th Exploratory Talks between the GRP and MILF in Malaysia in 2005 .

Hon. Marianito D. RoqueSecretary - Department of Labor and Employment

Marianito D. Roque represents the private sector in the LANDBANK Board. He was the former administrator of the Overseas Workers Welfare Administration (OWWA) before being named Acting Secretary of the Department of Labor and Employment on March, 2008. Director Roque started out as Employment Marketing Officer at the now defunct Overseas Employment Development Board, the forerunner of OWWA. In 1982, he served as technical assistant to the OWWA administrator and concurrent head of the agency's Resources Management Unit. From 1986 to March 2004, he held the post of OWWA director and eventually the post of deputy administrator. His stint with OWWA was marked by his authorship of innovative welfare programs and projects for overseas Filipino workers. Director Roque earned his bachelor’s degree in economics at the De La Salle University and his master’s degree in business administration at the Ateneo de Manila University. He was a marketing professor at the Philippine Women’s University before he joined government.

Mr. George J. RegaladoRepresentative - Private Sector

was appointed private sector representative of the LBP Board of Directors in August 2004. Before joining LANDBANK, he served as director at the Office of the Majority Floor Leader at the House of Representatives and board member of the Mindanao Peace and Development Fund. Furthermore, he used to be a part-time lecturer/instructor in the University of Sto. Tomas, La Consolacion College, and Baguio Graduate School, among others. Currently, he also serves as consultant for the First Congressional District Office in Davao City and the Head of the Management Team for South Luzon Culinary Cuisine, Inc.

Mr. Albert C. BalingitRepresentative - Private Sector

became a member of the LBP Board in December 2001, representing the private sector. He chairs LANDBANK’s Non Performing Assets Portfolio Auction Sale Bids and Awards Committee which recently marked a possible breakthrough in achieving a more rapid market-based resolution of the bad debt problem of commercial banks by selling a significant portion of the bank’s non-performing loans portfolio. Before LANDBANK, he has also held various positions such as President of the Pangasinan Realty Corporation and Director of the Dagupan City Water District.

Mr. Ombre S. Hamsirani Representative - Agrarian Reform Beneficiaries

Sector

represents the agrarian reform beneficiaries in the LANDBANK Board of Directors. He was formerly a regional director before becoming the administrator and chairman of the Cooperative Development Authority. Prior to this, Mr. Hamsirani was a coop officer at the Cooperative Administration Office and the Department of Local Government and Community Development. He also became a member of the board of the LANDBANK Realty Development Corporation, a wholly-owned subsidiary of LANDBANK. Currently, he is the president of O & R Enterprises Phils., Inc., a family-owned business engaged in importing and exporting marine products.

Atty. Cyril C. del CallarRepresentative - Agrarian Reform

Beneficiaries Sector

represents the Agrarian Reform Beneficiaries at the LANDBANK Board of Directors. He earned his Bachelor of Science Degree in Management Engineering from the Ateneo de Manila University and his Juris Doctorate Degree from the Ateneo Law School. He served as President of the National Power Corporation from April 2005 to September 2008. On the same period, he was a member of the Board of directors of the Philippine Electricity Market Corporation.

• Gilda E. Pico• President & CEO

Wilfredo C. MaldiaExecutive Vice

PresidentAgrarian & Domestic

Banking Sector

Andres C. SarmientoExecutive Vice PresidentOperations Sector

• Simeona S. Guevarra• Executive Vice

President• Corporate Services Sector

• Cecilia C. Borromeo• Executive Vice

President• Institutional Banking &

Subsidiaries Sector

BOARD-LEVEL COMMITTEESLIST OF MEMBERS

AS OF 31 DECEMBER 2008

CORPORATE GOVERNANCE COMMITTEE1. DOF Secretary Gary B. Teves - Chairman2. DOLE Secretary Marianito D. Roque3. LBP President and CEO Gilda E. Pico4. Director Albert C. Balingit5. Director George J. Regalado

AUDIT COMMITTEE1. Director George J. Regalado - Chairman2. DOF Secretary Gary B. Teves - Vice Chairman3. Director Albert C. Balingit4. Director Ombre S. Hamsirani5. DAR Nasser C. Pangandaman

RISK MANAGEMENT COMMITTEE1. Director Albert C. Balingit - Chairman2. DOF Secretary Gary B. Teves - Vice Chairman3. Director George J. Regalado4. Director Ombre S. Hamsirani5. Director Cyril C. del Callar6. DAR Nasser C. Pangandaman

TRUST COMMITTEE1. DOLE Secretary Marianito D. Roque -

Chairman2. Director Cyril C. del Callar - Vice Chairman3. LBP President and CEO Gilda E. Pico4. DA Secretary Arthur C. Yap5. VP Eduardo B. Chavez - Head, Trust Banking

Group

2008 Awardsinstitutionalizing a Quality Management System

(QMS) and securing ISO 9001:2000 certificates for its trust banking and wholesale lending operations

Anvil Award of Excellence given by the Public Relations Society of the Philippines for LANDBANK’s 2007 Calendar with a theme “Doing our Share in Protecting the Country’s Watersheds”

Anvil Award of Merit given by the Public Relations Society of the Philippines for LANDBANK’s 2006 Annual Report with a theme “Setting Off Ripples for Countryside Progress”

Given a “Satisfactory” rating by Department of Financial Institution in California for the audit made at LBP Remittance Co. in Panorama City, California.

– LANDBANK was conferred as the Best Paying Commercial Bank during the 2008 Balikat ng Bayan Award given by the Social Security System on its 51st Anniversary.

– The Environmental Management System (EMS) at the LANDBANK Plaza and the 10 pilot NCR Branches were conferred with the ISO 14001:2004 certificates by the AJA Registrars, Inc.

– LANDBANK received a plaque of recognition from the Development Academy of the Philippines (DAP) for being one of its founding institutions during its 35th anniversary celebration last October 17, 2008.

– LANDBANK sa DZRH at Radyo Natin received a 2008 Philippine Quill Merit Award conferred by the International Association of Business Communicators (IABC) last November 7, 2008.

– Anvil Awards of Merit for Profiles of Success 2 New and Updated Edition and LANDBANK 2008 Calendar themed as Festivals of Bountiful Harvest and a Plaque of Recognition for the LANDBANK sa Radyo Natin at DZRH given by the Public Relations Society of the Philippines

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.

e-BANKING PRODUCTS

iAccess Retail Internet BankingweAccess Institutional Internet

Banking Internet Corporate (i-Corp)

Viewing Facility LANDBANK Cash Card

OFW Cash Card

E-TAX PAYMENT SYSTEM

• Now you can pay your taxes thru the Internet with LANDBANK’s e-Tax payment system.

• The e-tax System is LANDBANK’s participation to the Electronic Filinf and Payment System (EFPS) of the Bureau of Internal Revenue (BIR). Under the BIR EFPS, paperless filing of returns and payment of taxes is made possible through the Internet. Once the tax return is electronically filed, LANDBANK’s e-Tax Payment System processes the electronic payment of the tax due.

• This also means added convenience as you can now settle your payments anytime.

LANDBANK VISA CARD

• The LANDBANK Visa Card provides the means for the cardholder to conveniently and safely make cashless purchases from Visa accredited merchants and/or facilitate cash advances.

FINANCIAL HIGHLIGHTS

SUBSIDIARIES & ATTACHED ENTITIES

LBP Realty Development Corporation LBP Leasing Corporation

Masaganang Sakahan, Inc. LBP Countryside Development Foundation People's Credit and Finance Corporation

National Livelihood Development CorporationLBP Insurance Brokerage, Inc.

Foreign Subsidiaries Overseas Offices

Remittance Partners

Documents

Landbank of the Philippines