DBP net income up 13% to P4.49 B in first 9 months

Published November 29, 2018, 12:00 AM

by manilabulletin_admin

By Lee C. Chipongian

Government-owned Development Bank of the Philippines (DBP) reported a net income of P4.49 billion as of end-September, up 13 percent from same period last year of P3.98 billion, boosted by higher lending for infrastructure activities.

DBP president and CEO Cecilia C. Borromeo
DBP president and CEO Cecilia C. Borromeo

DBP president and CEO Cecilia C. Borromeo said that DBP’s net income exceeded its internal target of P4.06 billion for the third quarter and “has already realized 81 percent of its annual target of P5.56-billion for the year.”

“DBP has surpassed most of its fiscal targets for the year, and at the same time, remains financially strong to support the various development initiatives of the government,” she said.

DBP reported gross income of P18.85-billion for the first nine months, up 14 percent year-on-year while total assets rose by 13 percent to P632.93 billion.

Borromeo said they continue to have strong capital health with a capital adequacy ratio 14.51 percent as of end-September, above the central bank’s benchmark of 10 percent. Common equity Tier 1 Ratio, which consists mostly of common stock, was recorded at 10.96 percent, she added.

DBP, the country’s second biggest government bank and the eighth of 44 universal/commercial banks, is mandated to provide loans to four key sectors of the economy: infrastructure and logistics; micro, small and medium enterprises (MSMEs); social services and community development; and the environment.

Borromeo said that DBP’s loan portfolio increased to P250.3-billion during the period, or 98 percent of their target. New loan approvals were up by 144 percent to P85.9 billion. Loans to borrowers grew by 22 percent to P246 billion and more than the goal of P243.8 billion for the period.

“By priority thrust, the infrastructure and logistics sector received the biggest chunk of DBP assistance for the first three quarters of 2018 with a total loan portfolio of P104.5-billion which is P4.5 billion more than our year-end target of P100-billion,” said Borromeo.

Lending for the social services and MSME sectors reached P26.2-billion and P15-billion, respectively.
Borromeo said they not only increased its lending activities but also “revitalized” branch operations across the country and this improved its deposits.

DBP’s deposit base was up by 22 percent to P447.83-billion with Northern Luzon contributing 29.3 of the total while South Luzon has 27.6 percent and Metro Manila, 25.9 percent. Northern Mindanao has 25 percent of total deposits while Central and Eastern Visayas have 23.3 percent.

“DBP’s on-going deposit drive has netted more than 93,500 new accounts while allowing the bank to surpass our entire year target of P437 billion,” said Borromeo.