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Business

DBP aims to become P1-T bank by 2022

Mary Grace Padin - The Philippine Star

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) wants to increase its total assets to P1 trillion by its 60th anniversary in 2022 by expanding its deposit base and lending portfolio.

In a press briefing, DBP president and chief executive officer Cecilia Borromeo said the government financial institution aims to become “a one trillion bank” by 2022 to enable it to compete amid the economic integration of the Association of Southeast Asian Nations (ASEAN).

“We recognize that we will have challenges. We will not be cushioned from external challenges, especially with the creation of the ASEAN economic community,” Borromeo said.

“We have to beat their (neighbor banks’) assets to be comparable with our counterparts and it is our goal to reach a P1 trillion asset base by 2022,” she added.

This represents a 67.39 percent increase from the bank’s current asset base which stood at P597.41 billion in 2017.

To achieve this vision, Borromeo said the DBP is improving its financial indicators, such as portfolio quality, liquidity and capital ratios.

For one, the official said DBP would continue to expand its deposit base by aggressively targeting one million new depositors in the next five years, especially small depositors residing in underbanked areas of the country.

She said the bank would continue to establish new branches and extension offices in different provinces, and increase banking channels, automated teller machines and electronic platforms.

Borromeo said the DBP would also continue to be aggressive in its lending activities, starting by expanding its loan portfolio to P306.62 billion this year from P219.93 billion in 2017.

The DBP, for one, will put up more lending centers, and refocus its loan portfolio to infrastructure projects amid the administrations’ Build Build Build program, Borromeo said.

“We are intensely looking forward to helping bridge the country‘s infrastructure gap, and to help fund ongoing and proposed major infrastructure projects, which are vital for sustaining high and inclusive growth,” she said.

In 2017, the DBP extended P76.23 billion in loans to infrastructure and logistics projects, representing 35 percent of its total portfolio.

It has also approved a total of P7 billion for 132 projects under its Infrastructure Contractors Support Program.

“We need to continue to develop our digital and phycial infrastructure to capitalize opportunities in an integrated ASEAN economy. We’re also strengthening product development, taking into consideration the need to develop financial products and services that will be attractive to investors and businesses,” Borromeo said.

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