Landbank Research 1365l

LAND BANK OF THE PHILIPPINES

Subject: Finmgt1 –

Schedule: 7:30-9:00 TTh

Instructor: Mrs. Joanne Precy Pasion Submitted by: Bayungasan, Dafny Dontogan, Norie Joy Malate, Monaliza Narciza, Rachelle Quirimo, Karen Rosette, Mailyn Urbano, Jemima

Date: July 6, 2010

LAND BANK OF THE PHILIPPINES OVERVIEW It’s the largest formal credit institution in the rural areas, ranked among the top five commercial banks in the country, a government financial institution, known to be the bank of the countryside, one of the biggest governments owned and controlled corporation and much more. These are just some of the very attractive yet factual description of the Land Bank of the Philippines also known as LBP. The Land Bank of the Philippines started back in the Marcos regime. It was created under the R.A. 3844 known as Agrarian Reform Law enacted by Congress in 1963. Later, LBP became the first universal bank by charter with expanded commercial banking powers to sustain its social mission of spurring countryside development. The bank is directly under the istrative supervision of the Department of Finance (DOF). As a bank, it is under the regulatory supervision of BSP. It is audited by the Commission on Audit. 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. HISTORY Land Bank of the Philippines was first established on August 8, 1963 through the Republic Act 3844 (Agricultural Land Reform Code) with the initial capital of 200 million Php. The creation of the Land Bank of the Philippines (LBP) was 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. It was under the supervision of the Bangko Sentral ng Pilipinas (BSP). The bank was also exempted on all tax in operations, holdings, equipment, property, income and earnings and it was also exempted from cash or stock dividend payments to the National Government. It has the Agricultural Credit istration (ACA) which is responsible for extending credit assistance to farmer’s cooperatives and directly to small farmers The bank adopted its by-laws, established the first organizational chart and manual of operations in 1965 and Formed the Board of Trustees with the Secretary of Finance as chairman in 1966. On 21 October 1972, the Presidential Decree 27 (Tenant Emancipation Act) was created for the 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. LBP was to collect 15-year land amortizations from beneficiaries for the cost of the land plus 6% interest per annum 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 through the Presidential Decree 251 (Revitalizing LANDBANK) created on 21 July 1973. Through the decree, the LBP was granted universal or expanded commercial banking powers and established LBP as the universal bank with a social mission of spurring countryside development. This expanded LBP’s powers to include lending to agricultural, industrial, homebuilding or home-financing projects and other productive enterprises; grant loans to farmers cooperatives/associations to facilitate production, marketing of crops and acquisition of essential commodities; increased authorized capitalization to 3 billion Php; increased the of the Board of Directors to seven (7); and exempted from all national, provincial, municipal & city taxes and assessments

In 1977, LBP formed three major sectors - Agrarian, Banking and Operations to strengthen operations and ensure long-term viability. July 8, 1982, the role of ACA was abolished and its functions (loans to small farmers) were transferred to LBP. The Executive Order 229 (CARL) created on July 22, 1987. This 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 services. This give LBP the responsibilities 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 The Republic Act 6657 (CARL) created June 10, 1988 authorized LBP to collect from the FBs payment for lands awarded to them in 30 annual amortizations at 6% per annum and established LBP as the financial intermediary of the CARP. Executive Order 405 (CARP Land Valuation) of June 14, 1990 transferred the primary responsibility of determining land valuation and compensation for all lands covered under CARP from the DAR to the LBP so the bank created regional Land Valuation and Landowners Compensation Offices (LVOs) to carry out land valuation and compensation The Republic Act 7907 (Amended LBP Charter) created on 23 of February 1995 increased authorized capitalization to 9 billion Php, established LBP as an official government depository and increased the of the Board of Directors to nine (9) Executive Order 267 (CARL) issued on July 25, 1995 made the National Government to issue Agrarian Reform (AR) bonds to be used by LBP for land transfer payments. It also segregated the s of CARP-related transactions from the books of LBP August 25, 1998 the authorized capitalization increased to 25 billion Php by the Department of Finance and the President of the Philippines.

VISION, MISSION, and OBJECTIVES Vision: Land bank 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 to our farmers, fisherfolk 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. Objectives: Land bank is committed to improving the lives of all its stakeholders and working with them to lead the country to economic prosperity.

POWERS: For the purpose of achieving its main objective, the Land Bank of the Philippines which is corporate body is vested with certain powers, one which is: “To hold, own, purchase, acquire, sell or otherwise invest, or reinvest of stocks, bonds or other securities capable of giving the Bank a reasonably assured income sufficient to its financing activities and give its private stockholders a fair return on their holdings.”

MAJOR ROLES OF LBP 1. An implementing agency of CARP involved in land evaluation, compensation to owners of private agricultural land, and collection of amortizations from CARP farmer-beneficiaries. 2. Provision of credit assistance to small farmers and fisher folk and ARBS. 3. An official depository of government funds. 4. A government bank with a social mandate to spur countryside development. FUNCTIONS: The Basic Function of the Land Bank of the Philippines has been redefined as that providing: A. Timely and adequate financial in all phases involved in the execution of needed agrarian reform. This was redesigned by the Bank into machinery that would be form the new function. This function has 3 financial s this are: 1. The transfer of new ownership of agricultural land covered by landlords to tenant-farmers. 2. The effort to help the farmer-beneficiaries of agriculture to industry or other productive endeavours. 3. The shift of landowner resources and efforts from agriculture to industry or other productive endeavours. PRODUCTS AND SERVICES A. DEPOSIT PRODUCTS • Regular Savings • Regular Current • Savings with ATM Access • Current with ATM Access • Regular Peso E.A.S.Y. (Earning Access & Sure Yield) Check • Peso E.A.S.Y. (Earning Access & Sure Yield) Check with ATM Access • Regular Peso Time Deposit • High-Yield Savings (HYSA) • U.S. Dollar Savings • U.S. Dollar Time Deposit • LANDBANK E-$-P (Easy Dollar Pension) B. BANKING PRODUCTS • iAccess Retail Internet Banking • weAccess Institutional Internet Banking • Internet Corporate (i-Corp) Viewing Facility • LANDBANK Cash Card • OFW Cash Card

C. FUND TRANSFER SERVICES D. REMITTANCE SERVICES E. 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. F. 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. Types of Cards • • • •

Local Classic Local Gold International Classic International Gold

G. E-CARD The E-Card is a multi-access, multi-purpose ATM card: ID card for and employees, express Payment System (EPS) facility (debit card), access to LBP's phone banking and retail internet banking facilities. F. PHONE BANKING Land bank 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. G. LBP LONG TERM TIME DEPOSIT “HARVEST 5” TERM : 5 years and 1 day Eligible Depositors : Individuals (single or t s) Amount of Placement : Minimum of 100,000.00 Interest Rate : *RATE FOR 6/16/2010 TO 6/28/2010 - 4.0000% H. LOANS FOR COOPERATIVES (Coops) I. COUNTRYSIDE LOAN FUND The Countryside Loan Fund (CLF) is a wholesale credit facility from the World Bank. The CLF is available through LANDBANK to Participating Financial Institutions (PFIs) for relending to eligible sub-borrowers, i.e., private investment enterprises. There are three Programs under the CLF, namely: CLF I, II and III. J. TREASURY PRODUCTS Treasury bills Treasury bills are evidence of indebtedness issued by the National Government which provides investors with instruments with the following features: market-oriented interest rates, safety, marketability and short maturity. Treasury bonds Treasury Bonds are unconditional obligations of the sovereign state which mature beyond one (1) year • Basic features of land bank bonds =is a certificate of indebtedness issued by the Land Bank of the Philippines as payment for agricultural land transferred under the Land Reform Program of the government. 4 Basic Features: 1. The bond matures in 25 years, redeemable prior to maturity at the option of the Bank. 2. It earns 6% interest a year payable every May 20 to November 20. It is fully transferrable. 3. Land Bank bonds are fully secured by the assets of the Land Bank and are guaranteed unconditionally by the Government of the Republic of the Philippines. 4. In addition to its protective features, the Land Bank sets a sinking fund for each bond issued to assure redemption at maturity. Land Bank bonds are fully tax exempt both as to principal and interest.

K. TRUST PRODUCTS AND SERVICES • Unit Investment Trust Fund (UITF) • ABS (Asset Backed Securitization) Trusteeship • Individual/Corporate/Institutional Portfolio Management • Custodial Services • Employee Retirement Plan • Escrow Agency • Life Insurance Trust • Mortgage Trust Indenture • Personal Trust Services • Receiving Bank Services L. LAND TRANSFER PAYMENT • Interest Payment • Redemption Payment • Transfer/Assignment- Refers to the act of transferring an inscribed or bearer bond to constitute the assignee or transferee as the owner thereof. • Exchange - Refers to the act of giving one bond in return for two or more bonds, or giving two or more bonds in return for one bond, either inscribed or bearer, both cases involving the same bondholder, for an equal amount in any authorized denomination. • Conversion - Refers to the act of changing an inscribed bond with a bearer bond or a bearer bond with an inscribed bond for an equal amount in any authorized denomination with the same date of issue. • Replacement - Issuance/Replacement of lost/mutilated or destroyed bond. M. PROGRAMS FOR COUNTRYSIDE FINANCIAL INSTITUTIONS A. Credit Programs • Rediscounting Facilities for CFIs • Calamity Assistance Programs for CFIs • CFI Home Lending Program • Unsecured Subordinated Debt Facility B. Equity Investment Programs • Second Tranche for LANDBANK’s New Capital Infusion for CFIs • Equity Investment Program for Newly-Established and/or Existing Banks by NGOs/Cooperatives N. TODO UNLAD PROGRAM TODO UNLAD is LANDBANK’s flagship program for countryside development. Through its various lending programs and services, TODO UNLAD links cooperatives, local government units, private corporations/small and medium enterprises and non-government organizations in specific areas around an integrated development project. O. DEVELOPMENT ADVOCACY PROGRAM The DEVELOPMENT ADVOCACY PROGRAM (DEVAD) is a new lending modality which LANDBANK banks on the strength of market contracts purchase orders (P.O.), receivables and other credit enhancement. It veers away from the rigors of traditional lending. P. JATROPHA FINANCING PROGRAM Jatropha, commonly known as “tuba-tuba” is a non-edible, fruit-bearing shrubs with high oil content seeds which has a wide range of uses such as, pesticide, soap, fertilizer, oil for lighting and fuel.

ORGANIZATIONAL STRUCTURE

MANAGEMENT Board-Level Committee List of (As of May 14, 2010) CORPORATE GOVERNANCE COMMITTEE 1. DOF Secretary Gary B. Teves - Chairman 2. DOLE Secretary Marianito D. Roque 3. LBP President and CEO Gilda E. Pico 4. DAR Secretary Nasser C. Pangandaman 5. Director George J. Regalado AUDIT COMMITTEE 1. Director George J. Regalado - Chairman 2. DOF Secretary Gary B. Teves - Vice Chairman 3. Director Ombre S. Hamsirani 4. DAR Secretary Nasser C. Pangandaman RISK MANAGEMENT COMMITTEE 1. Director Cyril C. del Callar - Chairman 2. DOF Secretary Gary B. Teves - Vice Chairman 3. Director George J. Regalado 4. Director Ombre S. Hamsirani 5. DAR Secretary Nasser C. Pangandaman TRUST COMMITTEE 1. DOLE Secretary Marianito D. Roque - Chairman 2. Director Cyril C. del Callar - Vice Chairman 3. LBP President and CEO Gilda E. Pico 4. DA Secretary Bernie G. Fondevilla 5. AVP Felix Manlangit - Trust Banking Group BOARD OF DIRECTORS • Hon. Gary B. Teves • Pres. & CEO Gilda E. Pico • Hon. Bernie G. Fondevilla • Hon. Nasser Pangandaman • Hon. Marianito D. Roque • Mr. George J. Regalado • Mr. Ombre S. Hamsirani • Atty. Cyril C. del Callar Management Team • Pres. & CEO Gilda E. Pico • EVP Wilfredo C. Maldia • EVP Andres C. Sarmiento • EVP Simeona S. Guevarra • EVP Cecilia C. Borromeo

FINANCIAL HIGHLIGHTS

STATEMENT OF CONDITION As of 31 March (In Million Pesos) 2010 2009 Inc / (Dec) ASSETS Cash and Due from Banks/PCHC 74,431.00 Loan Portfolio (Net) 212,370.00 Investments (Net) 206,693.00 Bank Premises, Furniture and 4,808.00 Equipment (Net) Real & Other Properties 5,547.00 Acquired (ROPA) Other Assets (Net) 17,648.00 TOTAL ASSETS 521,497.00 LIABILITIES AND CAPITAL Deposit Liabilities Bills Payable Unsecured Subordinated Debt Other Liabilities TOTAL LIABILITIES TOTAL CAPITAL TOTAL LIABILITIES AND CAPITAL

62,214.00 189,486.00 144,307.00

12,217.00 22,884.00 62,386.00

20% 12% 43%

4,931.00

-123.00

-2%

7,273.00

-1,726.00

-24%

18,632.00 426,843.00

-984.00 94,654.00

-5% 22.2%

407,833.00 30,986.00 13,709.00 19,021.00 471,549.00

325,938.00 34,939.00 7,250.00 19,981.00 388,108.00

81,895.00 -3,953.00 6,459.00 -960.00 83,441.00

25% -11% 89% -5% 21.5%

49,948.00

38,735.00

11,213.00

29%

521,497.00

426,843.00

94,654.00

22.2%

STATEMENT OF INCOME AND EXPENSE For the three-month period Ended 31 March (In Million Pesos) 2010 2009 Inc / (Dec) EARNINGS Loans Investments Foreign Exchange Profit / (Loss) Others TOTAL EARNINGS EXPENSES Interest on Deposits Interest on Borrowed Funds Interest on Unsecured Subordinated Debt Other Financial Expenses Total Cost of Fund Provision for Probable Losses General & istrative Expenses TOTAL EXPENSES Net Income Before Provision for Income Tax Less: Provision for / (Benefit from) Income Tax NET INCOME AFTER INCOME TAX

% Growth

% Growth

3,885.00 3,766.00 1,063.00 494.00 9,208.00

3,897.00 2,207.00 1,208.00 305.00 7,617.00

-12.00 1,559.00 -145.00 189.00 1,591.00

-0.3% 71% -12% 62% 20.9%

1,866.00 244.00

1,677.00 296.00

189.00 -52.00

11% -18%

249.00

131.00

118.00

90%

13.00 2,371.00 20.00

00.00 2,104.00 218.00

13.00 267.00 -198.00

126200% 13% -91%

4,256.00

3,562.00

694.00

19%

6,648.00

5,884.00

764.00

13.0%

2,561.00

1,733.00

828.00

48%

45.00

32.00

13.00

41%

2,516.00

1,701.00

815.00

47.9%

SUBSIDIARIES AND S Landbank is divided into the following subsidiaries and s: • LBP Countryside Development Foundation • LBP Insurance Brokerage • LBP Leasing Corporation • LBP Realty Development Corporation • Masaganang Sakahan, Inc. • National Livelihood Fund • People's Credit and Finance Corporation FUNDING •

LBP is the main depository bank of the government. As such, a bulk of its funding requirements comes from the government. Land Bank services the banking requirements of the national government, local government units and government-owned and controlled corporations. As of December 2004, 65 percent of the deposit portfolio (PhP 214.91 billion) comes from government while the rest was gathered from private depositors.

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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.

AWARDS AND RECOGNITIONS • 1988 o The 1988 Anvil Award of its Countryside Credit Delivery Program • 1990 o The 1990 Catholic Mass Media Awards for Best Government Print Ad and in 1991 for Best Institutional TV ad o The 1990 Top Lending Bank Award for Quedan Programs for Farmer Groups from the Quedan-Guarantee Fund • 1991 o The 1991 Katangian Award for TV ad “Fr. Cesar Vergara” • 1992 o Named as the Most Outstanding Financial Institution in 1992 by the Guarantee Fund for Small and Medium Enterprises • 1993 o The 1993 Top Lending Bank Award from Gawad Quedancor o The 1993 Anvil Award for Best Countryside Development Program for Gawad Pitak o The 1993 Kabalikat Award from the Guarantee Fund for Small and Medium Enterprises o The 1993 YMCA Media Award from the YMCA of Manila • 1994 o LandBank’s Countryside Loan Fund I (CLF), was cited by the Coordinating Council of the Philippine Assistance Program as one of the “most effectively implemented foreign-funded financial assistance programs in the country” o Top accredited government securities dealer by the Bangko Sentral ng Pilipinas

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Cited by the World Bank for disbursing CLF I in a record setting of two years, three years ahead of the draw down schedule. Top accredited government securities dealer by the BSP (2nd time)

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One of the government’s top profit earners (by SEC)

The 1996 Anvil Award of Excellence for External Publication (calendar category). The 1996 Gawad Oscar M. Florendo Award as the most outstanding PR tool under the print category One of the five outstanding Accredited Financial Institutions by the Guarantee Fund for Small and Medium Enterprises Gil Puyat Award for entrepreneurship in the 1996 YMCA Citizens Award World Bank and NEDA citation for its impressive implementation of the Second Rural Finance Project, or the CLF II, six months after it started

1997 Top five government securities eligible dealers by the Bureau of Treasury First recipient of the Philippine Association of National rs (PANA) values award for LANDBANK’s Bagong Pinoy TV Ads o Again cited by World Bank and NEDA for its Countryside Loan Fund II which is considered as the “fastest-moving program among the 27 ongoing projects of the World Bank,” 1999 o PRSP’s Anvil Award of Excellence (1999 calendar featuring centennial trees with the theme: “Buhay na Puno, Puno ng Buhay”) o PROP’s Gawad Oscar Florendo – Outstanding Public Information (Print Category) 2001 o PRSP’s Anvil Award of Merit (2001 calendar featuring Sanctuaries: Protected Areas in the Philippines) o PROP’s Gawad Oscar Florendo Award of Excellence o o

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2003-2006 o CY 2003 Top Grosser Award from the Bureau of Internal Revenue for o Anvil Award of Merit, 39 th Anvil Awards of the Public Relations Society of the Philippines for 2002 Annual Report (March 2004) o Anvil Award of Merit, 39 th Anvil Awards of the Public Relations Society of the Philippines for the book “Profiles of Success: Stories of Gawad PITAK Winners” (March 2004) o Special Citation from the Philippine Health Insurance Corporation for posting the highest collections of PhilHealth s since it was accredited by the agency in 1997 (February 2005) o Anvil Award of Merit from the Public Relations Society of the Philippines for LANDBANK's 2006 Wall Calendar entitled "The Philippine Markets" o Anvil Award of Merit given by the PRSP for LANDBANK’s 2004 Calendar with a theme “Philippine Endangered Species” o Partnership Award given by the Development Bank of the Philippines for LANDBANK’s active participation and role in securities underwriting and issue management and to DBP’s investment banking business o Top state-owned financial institution in corporate governance by the Institute of Corporate Directors o Five Star Rating by the Department of Energy for being among the top contributors in the government’s energy saving program o Cited as “Outstanding Government Development Bank” during the 21st Annual Parangal ng Bayan Excellence Awards by the Parangal ng Bayan Foundation, Inc. o First Place in the top performing Government Securities Eligible Dealers for the combined Primary and Secondary Markets, 2007

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2008 o

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Cited by President Gloria Macapagal Arroyo for its achievement in institutionalizing 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.

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First and Second Place in the top performing Government Securities Eligible Dealers for the combined Primary and Secondary Markets awarded by the Bureau of Treasury for the period October 2006 to September 2007 Cited by the DENR as among its active partner institutions in undertaking environmental activities particularly for LANDBANK’s efforts to rehabilitate and preserve six water sheds in the country “Gawad Barya Award” given by the Bangko Sentral ng Pilipinas (BSP) for being the top contributor to the “Tulong Barya Para sa Eskwela” campaign, a t project of BSP and DepEd. Four Star rating given by the Department of Social Welfare and Development for LANDBANK’s Day Care Center “Blue Rating” given by the Laguna Lake Development Authority (LLDA) for LANDBANK’s adherence to the standards of LLDA under the 2nd cycle of the Public Disclosure Program for Industries within the Laguna de Bay Region. Certification for ISO 14001:2004 given by the Anglo Japanese Registrars, Inc. version after ing a Stage II audit of the Bank’s Environmental Management System Gold Quill award given by the International Association of Business Communicators for LANDBANK’s 2005 Annual Report with a theme ”A ion for the Countryside" Adjudged as the Most “Disabled-friendly” Bank in the National Capital Region by the National Council for the Welfare of Disabled Persons

Cited by PhilHealth as one of its top collecting accredited banks in Region III last February 25, 2009. Conferred the Anvil Awards of Merit for the 2008 Calendar entitled “Festivals of Bountiful Harvest” and “Profiles of Success 2” during the 44th Anvil Awards organized by the Public Relations Society of the Philippines. Recognized as the first among government-owned and controlled corporations and government financial institutions in of the Integrated Development Action Plan implementation for the first semester 2009.

2010 o

Conferred the Anvil Awards of Merit for the 2009 Calendar entitled “Migratory Birds in Philippine Coastal Areas” during the 45th Anvil Awards organize by the Public Relations Society of the Philippines.

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LANDBANK President and CEO Gilda E. Pico was awarded the “Communication Excellence in Organizations” CEO Excel Award for 2010 by the International Association for Business Communicators (IABC) last March. LANDBANK was cited as the fourth top brokering participant for its trades in government securities in 2009 by the Philippine Dealing and Exchange Corporation (PDEx).

SOCIAL RESPONSIBILITY 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 • En 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; NEWS ARTICLES LANDBANK earns ISO 9001:2008 QMS certifications The Land Bank of the Philippines (LANDBANK) was recently conferred two ISO 9001:2008 certifications: one for the lending and financial services operations of its Public Sector Department and the other for the loan operations of the Pampanga Lending Center. The ISO 9001:2008 Quality Management System (QMS) provides a comprehensive framework on which to build processes that help ensure that key business objectives are achieved. It is a guide to achieve and continually improve customer satisfaction. The said certifications are testament of the Bank?s sound management practices through its QMS. LANDBANK established QMS in its core banking processes to ensure consistent quality in customer service delivery and remain competitive and profitable in the long term. "This certification affirms our relentless commitment to institutionalize continual improvement of our performance and to understand and address our customers, needs and expectations. We will continue to expand the coverage of our QMS and replicate best practices to other units of the Bank," LANDBANK President and CEO Gilda E. Pico said. Pico also disclosed that just recently, the branch banking operations of the LANDBANK-PEZA Roxas Boulevard Branch has been recommended for ISO 9001:2008 QMS certification after successfully ing the Stage 2 audit conducted by Certification International Philippines, Inc. In 2007, LANDBANK was awarded a Certificate of Registration to ISO 9001:2000 by the Governing Board of Certification International UK Ltd. on LANDBANK?s wholesale commercial lending operations and trust banking and asset management services operations.

LANDBANK remains top lender in SULONG ing 273,000 jobs nationwide in 2009 More than 273,000 jobs nationwide have been ed with LANDBANK's contributions to the government's SME Unified Lending Opportunities for National Growth (SULONG) which totaled P21.8 billion in December 2009. This includes jobs in manufacturing, processing, services, trading and merchandising. LANDBANK remains as the top contributor among the government financial institutions since the program was launched by the national government in 2003 in of the SME sector. "We have sustained our efforts to keep credit accessible and affordable to more SMEs because their operation is vital to the growth of our economy. With enough funding, more livelihood and job opportunities are created which ultimately redounds to greater productivity and improved life quality for more Filipino families," LANDBANK president and CEO Gilda E. Pico said. Among the highly-successful SMEs financed by LANDBANK is Ms. Eduarda "Eden" Ayo of Capuy in Sorsogon City. Ms. Ayo is a rice and copra trader and dealer of palay seeds, pesticides and fertilizers who employs around 300 regular workers in her family farm and some 80 workers in their hog-raising and breeding business. She was named as the "Entrepreneur of the Year" by LANDBANK under its Gawad Entrepreneur Award in 2009. In the same year, she was also given special citation by Ernst & Young in the same category. Ms. Vicenta Orodio, owner of the Orodio Junkshop in Pasong Tamo, Makati, is another entrepreneur being assisted by LANDBANK. She started her business in 1964 with only two carts to buy and collect empty bottles of sauces and liquors, scrap metals and old newspapers around town. Soon her neighbors enjoyed gainful livelihood as her business grew and prospered to become among the major suppliers of recyclable materials to various manufacturing companies. In 2008, LANDBANK gave the Gawad Entrepreneur Award in the non agri-based category to Orodio Junkshop especially for its contribution in employment generation and community development. LANDBANK also s the General de Jesus College, Inc. (GJC) in San Isidro, Nueva Ecija. The private secondary school was founded in 1946 by educators who responded to the call of their youth for higher education during the post-war period. In 1978, they started offering college education on a rented building. Today, GJC has an average population of 2,500 students and maintains eight school buildings, 59 classrooms, a gymnasium, istrative office and computer laboratories. It is the only school in Nueva Ecija with two programs - BS Secondary Education and High Schooll, accredited by the Federation of Accrediting Agencies of the Philippines. GJC received a special citation as SME Maka-kalikasan under the Gawad Entrepreneur of LANDBANK in 2009.

LANDBANK and PETRON prepare scholars under the Tulong Aral High School Scholarship Program The Land Bank of the Philippines (LANDBANK), Petron Foundation, Inc. (PETRON) and the Philippine Business for Social Progress (PBSP) recently re-oriented the 98 scholars under the Tulong Aral High School Scholarship program in preparation for their third year education in school year 2010-2011. The high school student beneficiaries who are currently receiving financial from LANDBANK were among the graduates of Tulong Aral ng Petron program for high school level. Since 2008, LANDBANK has helped send these children to high school for free. They came from indigent families in urban poor communities identified by the Department of Social Welfare and Development (DSWD). LANDBANK President and CEO Gilda E. Pico emphasized in her opening remarks that educating the youth is vital to the socio-economic progress of every country. "We value with utmost priority the education of our youth as their knowledge and skills will contribute largely to the growth and prosperity of the country," Pico explains. The program, which aims to provide high school education to poor but deserving students in Metro Manila, is a collective effort of the PETRON, LANDBANK, PBSP, DSWD, Department of Education (DepEd) and other private organizations. The Petron Foundation, as the lead agency, developed the conceptual framework for the scholarship program while LANDBANK and PBSP participate in the implementation, monitoring and evaluation of the program. LANDBANK and its employees contributed P4 million to the program which are being released in tranches of P1 million a year. The DepEd established the data base of scholars and coordinates with concerned schools while the DSWD assists LANDBANK and Petron in selecting the program beneficiaries particularly in determining the income level of the families of the scholars. Apart from financial , LANDBANK also participates in providing workshops and study tours to the students in coordination with the program partners. SOURCES: https://www.landbank.com/index.asp http://en.wikipedia.org/wiki/Land_Bank_of_the_Philippines http://www.fao.org/ag/ags/agsm/banks/banks/philipp.htm http://www.chanrobles.com/legal3lbp.html http://www.bwtp.org/arcm/Philippines/II_Organisations/Donor_Investors/LandBankoft hePhilippines.htm