“Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

17
“Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines” MR. JULIO D. CLIMACO, JR. Senior Vice President for Strategic Planning A D F I A P 35 th Annual Meeting 2012 LAND BANK OF THE PHILIPPINES

description

A D F I A P 35 th Annual Meeting 2012. “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”. MR. JULIO D. CLIMACO, JR. Senior Vice President for Strategic Planning. LAND BANK OF THE PHILIPPINES. BACKGROUND ON LANDBANK. - PowerPoint PPT Presentation

Transcript of “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

Page 1: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

“Financing SMEs and Cooperatives: Fortifying Sustainable

Development in the Philippines”

MR. JULIO D. CLIMACO, JR.Senior Vice President for Strategic Planning

A D F I A P35th Annual Meeting 2012

LAND BANK OF THE PHILIPPINES

Page 2: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

BACKGROUND ON LANDBANK

• 100% government-owned universal bank created in 1963

• Principal depository bank of the Philippine government

• 327 branches and 1,000 ATMs nationwide as of March 2012

• Largest provider of credit to farmers cooperatives, MSMEs, local government units and rural banks

• Obtained a CAMELS Rating of “4” in April 2011. Highest rating granted by Bangko Sentral to a Philippine bank. Second bank to attain a rating of 4.

Page 3: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

BACKGROUND ON LANDBANK

• Fourth largest in the Philippine banking industry as of 31 December 2011 in terms of:

Assets - USD 14.75 BillionDeposits - USD 11.71 BillionLoans - USD 7.21 BillionNet Income - USD 208 Million

• High Return on Equity of 15.4% in 2011 and low NPL ratio of 2.1%.

Page 4: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

• Local Government Units

• Rural Banks

• Small Farmers and Fisherfolk Cooperatives

• Agrarian Reform Beneficiaries

• Microenterprises and SMEs

• Agribusiness Enterprises

• Agri-Processors

LBP’s INTEGRATED COUNTRYSIDE DEVELOPMENT FRAMEWORK

LBP

Page 5: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

LBP LOANS OUTSTANDING TO MICROENTERPRISES AND SMEs

(In USD Millions)

Page 6: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

LBP LOANS OUTSTANDING TO SMALL FARMERS AND FISHERFOLK

(In USD Millions)

Page 7: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

NUMBER OF SMALL FARMERS AND FISHERFOLK BENEFICIARIES OF LBP LOAN RELEASES

2007 to 2011 – 3.12 M

Page 8: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

LBP LOANS TO LOCAL GOVERNMENT UNITS (In USD Millions)

Page 9: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

LBP FORTIFIES ROLE AS THE BANK FOR LOCAL GOVERNMENT UNITs

• LBP is the largest provider of development finance to the provinces, cities and municipalities; and 854 LGUs currently have loans with LBP. About 50% of the country’s LGUs are loan clients of the Bank.

• LBP is also the depository bank of 97% or 1,665 of the country’s 1,714 LGUs.

• Loans to LGUs have been on a sustained uptrend and increased to USD 1.057 billion in 2011.

• Of the USD 1.057 billion LGU loans as of 2011, USD 748 million were loans for agri-infrastructure projects, USD 102 million for schools and hospitals, and USD 207 million for other developmental projects.

Page 10: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

THE CONCRETE-FRAMED 2-STOREY MUNICIPAL HALLSOUTH UBIAN, TAWI-TAWI

Page 11: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

ROCK CAUSEWAY AND EXTENDED PIER SOUTH UBIAN, TAWI-TAWI PROVINCE

Page 12: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

SPEEDBOAT (POWERED BY TWO 250-HP OUTBOARD ENGINES) SOUTH UBIAN, TAWI-TAWI PROVINCE

Page 13: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

FOOD SUPPLY CHAIN PROGRAM• LANDBANK, in partnership with the Department of Agriculture (DA) and the

Department of Finance (DOF), launched the Food Supply Chain Program in October 2010

• It aims to increase farmers’ income by way of providing necessary financial and technical support along the value-added chain of a commodity or industry.

• The program provides the following: Credit assistance to key players in the food system such as agricultural producers, service

providers, consolidators, processors and various market players;

Market linkages between agricultural producers and processors; and Capacity-building support to strengthen farmers’ organizations and enable them to meet

product requirements of anchor firms.

• As of December 2011, 140 projects (involving 140 anchor firms and 381 coops and SMEs) have been enrolled in the program. LBP has released USD 210 million in loans in 2011. These loans have benefitted 78,050 farmers and fisherfolk.

Page 14: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

UPDATE ON FOOD SUPPLY CHAIN PROGRAM December 2011

Particulars Total

Number of Projects 140

Number of Anchor Firms 140

Number of Coop/FO/NGO Producers 381

Number of Farmers Assisted 78,050

Loan Releases USD 210 M

Page 15: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

RICE PRODUCTIVITY PROGRAM – SUPPORT TO PHILIPPINE GOVERNMENT’S

SELF-SUFFICIENCY TARGET

1. A special program where LANDBANK provides credit assistance to small palay farmers.

2. Program supports the government’s efforts to increase rice production and achieve food self-sufficiency by providing the following:

1.credit to conduits such as farmers’ cooperatives, irrigators’ associations, and countryside financial institutions (CFIs); and

2.credit enhancements (such as market contracts, crop insurance and guarantees)

• Total releases as of 31 December 2011 amounted to USD 359 Million benefiting 517,835 farmers.

Page 16: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”

SIKAT SAKA PROGRAM(FOR RICE PRODUCTION)

In January 2012 LANDBANK forged a Partnership Agreement with Department of Agriculture for the implementation of the Sikat Saka Program, a lending program which will provide small palay farmers direct access to credit.

LANDBANK and the Department of Agriculture (DA) initially earmarked USD 4.7 million each for loans to palay farmers in four major rice producing provinces – Isabela, Nueva Ecija, Iloilo and North Cotabato.

LANDBANK shall provide credit assistance and manpower to complement, manage and monitor the program implementation. The loan proceeds of the farmers will be credited to their special LANDBANK ATM card.

The DA shall take the lead in the program implementation and also provide loan funds, assured market, and irrigation and extension services.

Page 17: “Financing SMEs and Cooperatives: Fortifying Sustainable Development in the Philippines”