MANILA, Philippines – The Development Bank of the Philippines (DBP) is looking at a P5-billion net income this year, after an almost negligible earnings growth in 2015.
Net income rose to P4.7 billion or a mere 2.17-percent increase last year, from P4.6 billion in 2014. Earnings stood at P4 billion in 2012 rising to a record P5.2 billion in 2013.
DBP president Gil A. Buenaventura said loan growth drivers last year and in 2016 will remain the same.
“It will still be the same drivers in our targeted lending sector like electric cooperatives, local government units (LGUs), water districts and the like,” Buenaventura said.
Net loans and other receivables increased to P199.7-billion, with the bulk of the increase accounted for by regular loans worth P18.8-billion.
“We are looking at double digit growth in loans this year, after the relatively flat (growth) last year
which was offset partly by high expenses,” Buenaventura said during the formal launching of a coffee table book of the Industrial Guarantee and Loan Fund (IGLF).
The IGLF approved small business loans of P4.23-billion in 2015, exceeding the P4-billion year target. Actual releases stood at P3.94-billion, absorbing 98.57-percent of the target. The loan growth was achieved sustainably, as net income posted P103-million.
Both loan approvals and releases were driven by short-term loans comprising 62 percent of total releases and 58 percent of total approvals. These are mostly small business loans of micro, small and medium enterprises (MSME) scattered all over the Philippines.
The fund’s total loan portfolio reached P4.49-billion, up by P1.17-billion or 35.6 percent from previous year’s P3.31 billion.
The number of MSME accounts under retail lending from DBP’s or Small and Medium Investment Loans for Entrepreneurs (SMILE) department, increased by 165 percent. Other loan growth came from wholesale loans to partner financial institutions lending to countryside enterprises.
“Deposits grew by 10.4 percent in 2015 versus previous year, and especially low-cost Checking and Savings Accounts or “CASA” which is growing higher than that, at 12.2 percent year-on-year. Most significantly, the “True” CASA – taking into account only savings and current accounts has already crossed the P100-billion mark – at P104 billion at the end of 2015, making DBP one among a handful of banks that have achieved this Breakthrough CASA level,” DBP said in a statement.
It further said that DBP’s total assets amounted to P504 billion at the end of 2015.
“DBP finally crossing the target half trillion-peso mark; and this increase has been largely fueled by loans growth,” it added.