Development Bank of the Philippines net income up 4.2% in 2018

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) booked a total net income of P5.72 billion in 2018, higher by 4.2 percent than the P5.49 billion it earned in 2017, a top official said yesterday.

In a statement, newly installed DBP president and chief executive officer Emmanuel Herbosa said the bank posted an increase in its net profit last year due to the growth in its loan portfolio and the expansion in its deposit generation activities, especially in the countryside.

“DBP ramped up its lending activities last year in support of the administration’s goal of increasing investments in infrastructure to boost the economy and promote inclusive growth especially in areas outside of traditional urban centers,” Herbosa said.

DBP provides loans to four key sectors of the economy, namely, infrastructure and logistics, micro, small and medium enterprises (MSMEs), social services and community development, and the environment. It has been designated as the infrastructure bank of the national government.

According to Herbosa, DBP’s total loan portfolio in 2018 stood at P328.93 billion, up by 12 percent from the P293.82 billion recorded in 2017.

He said about 33.6 percent or P110.52 billion of the amount was allocated for the infrastructure and logistics sector.

Herbosa said the DBM also expanded its funding support for the social services sector, including the construction of hospitals and schools, with a total loan portfolio of P41.31 billion.

“DBP also lent P21.9 billion to the micro, small, and medium enterprises sector including retail loans and loans to participating financial institutions and approved a total of P10.34 billion in loans for environmental projects,” he said.

New loan approvals also reached P122.58 billion last year, translating to a 206 percent realization rate of the bank’s full-year target of P59.63 billion.

Meanwhile, Herbosa said the bank likewise hiked its deposit base by 15 percent to P474.44 billion from P412.36 billion in 2017. This pushed the bank’s net worth or capital base to about of P51.16 billion as of end-2018.

“Deposits from the public sector continue to comprise the bulk of the bank’s total deposits with a total of P305.97 billion, which is reflective of the increased economic activity especially by the local government units,” Herbosa said.

DBP also expanded its branch network and banking channels in 2018, opening additional nine branch lite units and 152 automated teller machines by the end of the year.

“At present, DBP’s total branch network has increased to 137 branches with the number of ATMs reaching 789, many of which are in unbanked areas of the country,” the bank official said.