DBP posts P3.1-B net income in H1, up 12.3%

Published August 23, 2019, 12:00 AM

by manilabulletin_admin

By Emmie V. Abadilla

The Development Bank of the Philippines (DBP) netted P3.1- billion earnings in the first half of 2019, up 12.32 percent from the same period last year, expanding its loan portfolio, deposit levels, as well as assets and putting it in a prime position to support the administration’s growth initiatives.

DBP president and chief executive officer Emmanuel G. Herbosa
DBP president and chief executive officer Emmanuel G. Herbosa

“The remarkable financial performance of DBP has fortified its stance and resources to fund the priority development programs of the National Government,” confirmed president and chief executive officer Emmanuel G. Herbosa.

The eighth largest bank in the country in terms of assets, DBP lends to strategic growth sectors such as infrastructure and logistics, micro, small and medium enterprises (mSMEs), social services and community development, along with the environment.

Overall, DBP’s gross loan portfolio grew19.79 per cent to P368.33 billion from the P307.47 billion posted in the previous year.

“Total assets grew to P667.91 billion from the P617.87 billion last year and net worth increased by 16.33% to P56.78 billion,” he reported. “Our capital adequacy ratio stood at 14.03%, which is higher than the industry average of 12.12%.

Driven by the aggressive marketing and financial inclusion initiatives of its expanded branch network, the bank also increased its deposit levels to P464.83 billion in the first six months from P431.65 billion in the comparative period. DBP has 137 branches, including 10 branch-lite units catering to underserved and underbanked areas in the country.

Furthermore, DBP’s continued support to strategic sectors of the economy such as the infrastructure and logistics sector, which received nearly P143 billion in funding assistance.

“The bulk of the funding went to projects in key industries like energy, water resources, manufacturing, transportation, construction, and manufacturing,” Herbosa explained.

Most of these projects are located in Davao, Central Visayas, Calabarzon, Central Luzon, and the National Capital Region (NCR).

Earlier this year, DBP granted a P650-million loan to the provincial government of Davao Oriental for various initiatives, including the acquisition of heavy equipment for infrastructure projects and the establishment of potable water systems.

The bank likewise approved a P600-million loan to the city government of Tuguegarao for the repair of various roads in the city and construction of public market.

In addition, DBP lent P64.4-billion to social infrastructure projects or those involving health care, education, housing, and solid waste management.

The bank also funded the recently-inaugurated Parañaque Sewerage Treatment Plant (STP) of Maynilad Water Services, Inc. The new facility removes pollutants from wastewater currently collected from about 100,000 Maynilad customers in Parañaque City before its discharge to the Malabon Creek, which eventually flows out to Manila Bay.

For the agriculture sector, DBP lent P50.9-billion to projects involving forestry, fishing and wholesale and retail trade of agriculture products.

“We also provided financing in the amount of P36.8-billion to strategic sectors and industries that adopt environment-friendly processes and technologies,” he noted.

On the other hand, DBP’s funding assistance to the mSME sector stood at P23-billion, with enterprises based in Davao, Northern Mindanao and Soccsksargen among the top recipients of the bank’s development assistance.

Recently, the bank funded the construction of a tunnel-ventilated poultry building of Amaris Farm in Camarines Norte to promote agribusiness and boost farm productivity in the province.

“Moving forward, DBP will continue to remain true to its developmental mandate by supporting key sectors of the economy,” Herbosa pledged.

“The bank will likewise intensify its drive to promote financial inclusion especially in unbanked and underserved areas of the country in order to remain a relevant and responsive partner of the National Government in promoting inclusive growth particularly in the countryside.”

Already, DBP launched the Lending Initiatives for Sanitation (LINIS) program aimed at assisting public and private entities including local government units and water districts in establishing waste water treatment facilities.

In addition, it supports the National Government’s public utility vehicle modernization via its Program Assistance to Support Alternative Driving Approaches (PASADA) financing program offering reasonable terms to transport cooperatives looking to acquire brand new, low-emission, and fuel-efficient public utility vehicles.

Finally, the bank opened the Contract to Sell Financing Facility aimed at assisting housing developers to expand their housing projects through DBP’s purchase of receivables covered by a Contract to Sell.