DBP books higher net income in first semester

THE Development Bank of the Philippines (DBP) saw its net income rise in the first half of the year supported by its robust lending and deposit businesses.
In a statement sent to reporters on Friday, the state-run DBP said it booked a P2.76-billion net profit from January-June, 4% higher than the P2.65 billion earned during the same period last year.
DBP President and Chief Executive Officer Cecilia C. Borromeo attributed the profit growth to the expansion of its loan and deposit activities.
The bank saw a double-digit expansion in its loan portfolio, with outstanding credit standing at P250.59 billion as of end-June.
Broken down, DBP lent about P82.88 billion to the infrastructure and logistics sector and some P72.1 billion to government owned and controlled corporations, local government units and other private firms.
The agriculture sector received loans totalling P40 billion, while projects in healthcare, education and housing got P38.58 billion in assistance.
Lending for projects on the environment amounted to P15.94 billion.
Likewise, total deposits grew by 25% to P431.65 billion in the January-June period from last year’s P344.4 billion.
DBP saw double-digit growth in areas such as Northern Luzon (24.5%), Southern Luzon (23.4%), Metro Manila (21.9%), Central and Eastern Visayas (20.8%) and Northern Mindanao (21.3%).
DBP’s gross income, on the other hand, reached P12.18 billion, up 10.73% from the P11 billion tallied in the first semester of 2017.
Overall, total assets grew 16% to P617.87 billion from P533.76 billion last year.
Ms. Borromeo said the rise in DBP’s net income is a “testament to the efficacy of the reforms and innovation it made during the past several months.”
“We now have sufficient financial muscle to support our development banking activities and further assist critical sectors of the economy,” Ms. Borromeo was quoted as saying in the statement.
Ms. Borromeo added that the bank targets to collect P4 billion in fresh deposits this year as it grows its base by bringing in 400,000 new private depositors, especially those in the underserved and unbanked areas of the country.
According to the latest central bank data, DBP was the eighth-biggest commercial bank in asset terms as of end-March. It has been designated by the government as the country’s bank for infrastructure loans. — Karl Angelo N. Vidal