DBP 1st sem net income up 131% to P2.76 B

The Development Bank of the Philippines’ (DBP) netted P2.76-billion income for the first half of 2022, up 131 percent versus the same period last year, due to significant increase in loan volume and interest income, along with lower cost of funds.

“DBP re-affirmed its commitment to hasten the economic recovery of the country by intensifying its development lending activities,” President and Chief Executive Officer Emmanuel G. Herbosa stated Thursday, September 8.

“Its solid financial performance in the first half of the year puts it in a prime position to bolster its support to the various priority programs of the National Government,” he added.

DBP is the sixth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises (MSMEs); the environment; and social services and community development.

The bank’s total loans from January to June 2022 grew to P494.15-billion, reflecting a 13 percent growth from the P436.02-billion recorded last year.

About 55.33 percent, or P273.43-billion, were released to bankroll projects in the infrastructure and logistics sector, majority of which are located in the National Capital Region, Central Visayas, and Central Luzon, according to Herbosa.

DBP’s outstanding loans for social infrastructure and community development projects as of end June 2022 totaled P98.49-billion.

On the other hand, its outstanding portfolio for other developmental initiatives covering finance and insurance, manufacturing, wholesale and retail trade, accommodation, and food services amounted to P65.20-billion.

“The Bank also provided P48.69-billion in loans for the agriculture sector in support of the government’s food sufficiency program, as well as P52-billion for environment-related projects and P31.58-billion for MSME sector,” the President noted.

Total deposits reached P731.90-billion, representing 82 percent of the P895-billion target by year-end, with low-cost deposits increasing by P9-billion.

DBP opened two more branch-lite units in Aroroy, Masbate and Jose Panganiban in Camarines Norte for the first half of the year.

This expands its branch network to 145 including 14 branch lite units, which are situated mostly in underserved and far-flung areas of the country.

DBP Executive Vice President for Operations Fe Susan Z. Prado attributed the rise in DBP’s first half net profit to the 29 percent increase in gross margin which reached P3.09-billion.

This despite being weighed down by the hefty provision for credit losses totaling P2.8-billion, with net income before provisions reaching P6.41-billion or a year-on-year increment of 85 percent.

The country’s positive economic outlook buoyed by the gradual and calibrated opening of the economy bodes well for DBP as it looks to capitalize on increased business activities for the remainder of 2022, says Prado.

“DBP’s first half income already represents a 72 percent realization rate of its P3.85-billion readjusted target for the year," she pointed out.

"The bank is on track to keep its position as one of the most financially stable government financial institutions in the country.”