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DBP net income up in first nine months

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DEVELOPMENT BANK of the Philippines (DBP) reported higher net income in the first nine months propelled by its lending business.

In a statement sent to reporters Thursday, the state-owned DBP said it booked a P4.49-billion net income in the nine months ended September, up 13% from the P3.98 billion recorded in the same period a year ago.

This also exceeded DBP’s P4.06-billion nine-month target and is already 81% of its full-year profit goal of P5.56 billion.

DBP President and Chief Executive Officer Cecilia C. Borromeo said the bank’s financial performance in the nine-month period was on the back of robust growth in its lending activities as well as its “revitalized” branch operations.

DBP’s loan portfolio stood at P250.3 billion, already 98% of its year-end target of P256.6 billion, with new loan approvals at P85.9 billion.

By priority thrust, Ms. Borromeo said the infrastructure and logistics sector received the biggest chunk of the lender’s assistance, booking P104.5 billion in the first three quarters.

DBP also lent P26.2 billion to the social services sector as well as P15 billion to the small and medium enterprises segment, while loans to borrowers reached P246 billion, up 22% from P202 billion in the same period last year.

On the other hand, total deposits reached P447.83 billion in the nine-month period, 22% higher than the P367.3 billion a year ago.

DBP saw double-digit deposit growth in Northern Luzon with 29.3%, Southern Luzon with 27.6%, Metro Manila with 25.9%, Northern Mindanao with 25%, as well as Central and Eastern Visayas with 23.3%.

The state-led bank also installed 154 new automated teller machines (ATM) this year, bringing the total to a network of 756 machines nationwide.

Ms. Borromeo said DBP will continue to put up more ATMs this year, especially in underserved areas, to support the government’s financial inclusion agenda.

“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 added.

For the first nine months, DBP’s gross earnings reached P18.85 billion, up 14% from P16.54 billion a year ago.

Overall, the lender’s total assets jumped 13% year-on-year to P632.93 billion from P557.84 last year.

Capital adequacy ratio was at 14.51% while common equity Tier 1 ratio was at 10.96%.

DBP was the eighth-largest commercial bank in the country in asset terms as of end-June and is the designated infrastructure bank by the government. It provides lending to four key sectors of the economy, namely infrastructure and logistics, SMEs, social services and community development as well as the environment. — K.A.N. Vidal