DBP books P3.1-B profit in H1

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) recorded a double-digit growth in earnings of 12.3 percent to P3.1 billion in the first half from P2.76 billion in the same period last year.

DBP president and chief executive officer Emmanuel Herbosa said in a statement the improved fiscal position of the bank puts it in a prime position to support the various growth initiatives of the Duterte administration.

“The remarkable financial performance of DBP has fortified its stance and resources to fund the priority development programs of the national government,” Herbosa said.

The government-owned bank lends to strategic growth sectors such as infrastructure and logistics, micro, small and medium enterprises (MSMEs), social services and community development, and the environment.

The bank’s loan book went up by 19.8 percent to P368.33 billion from P307.47 billion, while its deposit base inched up by 7.7 percent to P464.83 billion from P431.65 billion amid aggressive marketing and financial inclusion initiatives undertaken through its expanded branch network.

Herbosa cited DBP’s continued support to strategic sectors of the economy such as the infrastructure and logistics sector which received nearly P143 billion in funding assistance.

“The bulk of the funding went to projects in key industries like energy, water resources, manufacturing, transportation, construction, and manufacturing,” he said.

According to Herbosa most of the projects are located in Davao, Central Visayas, Calabarzon, Central Luzon, and the National Capital Region.

Herbosa said DBP also lent P50.9 billion to the agriculture sector for projects involving forestry, fishing, and wholesale and retail trade of agriculture products.

“DBP also provided financing in the amount of P36.8 billion to strategic sectors and industries that adopt environment-friendly processes and technologies,” he said.

DBP’s funding assistance to the MSME sector, meanwhile, stood at P23 billion, with enterprises based in Davao, Northern Mindanao and Soccsksargen among the top recipients of the bank’s development assistance.

“Moving forward, DBP will continue to remain true to its developmental mandate by supporting key sectors of the economy. The bank will likewise intensify its drive to promote financial inclusion especially in unbanked and underserved areas of the country in order to remain a relevant and responsive partner of the national government in promoting inclusive growth particularly in the countryside,” he said.

Herbosa said the bank grew its total resources to P667.91 billion and its net worth to P56.78 billion, while its capital adequacy ratio stood at 14.03 percent or higher than the industry average of 12.12 percent.

DBP has 137 branches that include 10 branch-lite units that cater to underserved and underbanked areas in the country.