By Emmie V. Abadilla
A reinvigorated Development Bank of the Philippines (DBP), which the administration tasked to be the country’s “Infrastructure Bank,” will have P1 trillion in assets by 2022, its Diamond Jubilee, from its P647 billion targeted in 2018, by expanding its deposit base and lending aggressively.
“We have been appointed to usher in the ‘golden age for infrastructure’ in the country,” stressed President and CEO Cecilia C. Borromeo. “We are helping bridge the country’s infrastructure gap, funding ongoing and proposed major infrastructure projects.”
Spurred by a steady growth in its loan portfolio, DBP netted P5.1 billion earnings in 2017, 21.43 percent up from 2016. This year, the bank projects to net P5.55 billion earnings, increasing its total loan portfolio to P306. 62 billion and deposits, to P455.57 billion.
In 2017, the state-owned bank’s gross loan portfolio stood at P293.47 billion, a 21.82 percent increase from the comparative period.
Total assets expanded by 11.43 percent to P597.41 billion. Deposits also grew from P356.24billion to P412.36 billion, with government deposits accounting for about 74 percent of this total amount.
DBP lent a total of P76.23 billion to infrastructure and logistics projects, representing nearly 35 percent of its P219.93-billion total loan portfolio.
Under its flagship Infrastructure Contractors Support (DBP ICONS) Program, DBP has approved a total of P7 billion for 132 projects. The bank aims to increase infrastructure lending to up to 80 percent of its loan portfolio, according to Borromeo.
Furthermore, DBP is improving its financial indicators, from portfolio quality to liquidity and capital so it can be comparable to its counterparts in the ASEAN region.
DBP is likewise beefing up its acquisition activities by targeting one million new depositors in the next five years, focusing on small depositors residing in underserved areas of the country.
“This is an integral part of our advocacy to introduce more unbanked Filipinos into the financial mainstream,” the DBP President noted.
In line with this, the state bank is expanding its branch network, opening 10 new branches in La Trinidad, Benguet; Alaminos, Pangasinan; Gapan, Nueva Ecija; Angeles City, Pampanga; Dolores, Eastern Samar; Lapu-Lapu City, Cebu; Oroquieta, Misamis Occidental; Panabo, Davao del Norte; Buhangin, Davao City; and Matina, Davao City.
The bank will likewise open eight new extension offices this year in Tumauini, Isabela; San Jose del Monte, Bulacan; Tayabas, Quezon; Placer, Masbate; Naga City, Cebu; Municipality of Siaton; Banga, South Cotabato; and M’lang Municipality, South Cotabato.
DBP will install 200 more ATMs in key areas nationwide to enhance its services to underserved communities and in line with the objective of promoting financial inclusivity in the countryside. “These new ATMs would bring the total number of DBP ATMs to 648 by the end of 2018,” she announced.
Ramping up support for the micro, small and medium enterprise (MSME) sector, DBP recently launched a R57-billion fund for small borrower-owners and poultry growers – the DBP Small Business Puhunan Loan Program and the Broiler Contract Growing Program.
The bank helped build 120 hospitals, through its R25.6-billion funding assistance to the social services sector while financing 15 hospital projects in Davao del Sur, 11 in South Cotabato, and five in Zamboanga del Sur.
“We also supported the construction of 2,486 schools and 12,831 classrooms through our assistance in school building projects,” Borromeo revealed.
Finally, DBP allocated P21.87-billion in loans to environment-related initiatives, such as water sewerage and management as well as power generation projects.