Land Bank is stable despite negative news report
The Land Bank last week tabled its integrated annual report. By all intentions and purposes, the Land Bank posted a net profit of R130.6m despite a ‘business news report’ that claimed its operations fell.
Furthermore, the bank maintained its credit rating owing to sound banking principles.
The departure of the TP Nchoncho to IDC in late 2018 ignited fears in the market that the bank may hit a moment of financial hiatus and stagnate.
“We continued to make progress on our development mandate in trying circumstances and balancing this objective with our financial sustainability. There has been substantial growth in transformation transactions with disbursements amounting to R5.07 billion to historically disadvantaged individuals” said the bank’s Acting CEO Kone Gugushe.
Land Bank denied that its profits dipped, thereby affecting its risk exposure. According to its integrated annual report, the Land Bank maintained a strong balance sheet evidenced by a solid Capital Adequacy Ratio (16.4%), Liquidity Coverage Ration (549.8%) and Net Stable Funding Ration (102%).
Other notable progress made by the bank was to grow its transformation loan book from 12% to 17%. This meant the reduction of loan restrictions to black farmers and producers. It also provided a provision of interest rate subsidies at a value of R58.7 million for the development of farmers.
“We are especially proud of our involvement in the creation of the first majority black-owned grain management company in the country which saw one of the largest transformations deals ever concluded in the agricultural sector,” Gugushe added.
