DBP reports 13% growth in third quarter profit

MANILA, Philippines — The net income of the Development Bank of the Philippines (DBP) rose by 13 percent to P4.49 billion in the first nine months from P3.98 billion in the same period last year, driven by increased loan releases and deposits, a top official said yesterday.

 DBP President and chief executive officer Cecilia Borromeo said this was also 11 percent higher than DBP’s nine-month net income target of P4.06 billion, already representing 81 percent of the bank’s full year goal of P5.56 billion.

“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,” Borromeo said in a statement.

Borromeo said DBP’s total gross income as of end-September grew 14 percent to P18.85 billion from the P16.54 billion recorded in the same period in 2017.

Borromeo also noted that DBP has remained the eight largest bank in the country, with total assets reaching P632.93 billion or 13 percent up from the P557.84 billion posted in the same period last year.

“DBP’s capital adequacy ratio stands at 14.51 percent, which is way higher than the industry average of 10 percent, while common equity Tier 1 Ratio, which consists mostly of common stock, was recorded at 10.96 percent,” she said.

According to Borromeo, DBP’s financial performance from January to September received a boost due to the robust growth in the bank’s lending activities, as well as its revitalized branch operations.

Borromeo said the bank’s loan portfolio stood at P250.3 billion, which already accounts for 98 percent of its year-end target of P256.6 billion. New loan approvals reached P85.9 billion, also 44 percent above the target of P59.6 billion.

“By priority thrust, the infrastructure and logistics sector received the biggest chunk of DBP assistance for the first three quarters of 2018 with a total loan portfolio of P104.5 billion, which is P4.5 billion more than our year-end target of P100-billion,” Borromeo said.

She said DBP also exceeded its goals for the social services, and micro, small and medium enterprise sectors, with loan releases amounting to P26.2 billion and P15-billion, respectively.

Loans to borrowers grew by 22 percent to reach P246 billion from P202 billion in the same period last year. This also surpassed the full year goal of P243.8 billion.

Meanwhile, total deposits from January to September increased 22 percent to P447.83 billion from P367.3 billion in the same period a year ago. DBP recorded double-digit growths in different areas, including Northern Luzon, South Luzon, Metro Manila, Northern Mindanao, and Central and Eastern Visayas.

“DBP’s ongoing deposit drive has netted more than 93,500 new accounts while allowing the bank to surpass our entire year target of P437 billion,” Borromeo said, referring to the DBP’s deposit campaign providing incentives to new bank account holders.