DBP profit up 6% to P6.06 billion

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) eked out a six percent increase in earnings to P6.06 billion last year amid healthy returns in its lending and investment activities.

 Emmanuel Herbosa, president and chief executive officer of DBP, said the country’s eighth largest lender in terms of assets booked a 28 percent rise in net interest income to P29.64 billion.

“DBP boosted its lending activities in 2019, in support of the national  government’s goal of increasing investments in the infrastructure sector, so as to further build up the economy and promote inclusive growth especially in areas outside of traditional urban centers,” Herbosa said.

 DBP’s total loan book jumped by 25.9 percent to P414.06 billion.  Almost half or P164.8 billion went to the infrastructure and logistics sector.

He said the bank broadened funding support for the social services sector such as the construction of hospitals and schools nationwide with a total loan portfolio of P71.2 billion.

“DBP also lent P27.8 billion to the MSME sector including retail loans and loans to participating financial institutions and approved a total of P44.3 billion in financial assistance for environmental projects,” he said.

Total loan approvals reached P133.1 billion, 177 percent  higher than the bank’s full-year target of P75 billion.

DBP expanded its suite of responsive credit programs with the expanded rice credit assistance under the Rice Competitiveness Enhancement Fund, DA-ACPC-DBP BuyANIhan credit program, electric cooperative loan take-out assistance from PSALM, and the DBP rehabilitation support program on severe events.

The bank also facilitated the disbursement of P39 million to two projects under the people survival fund and P1.5 billion to about 300,000 marginalized rice farmers via the rice farmer financial assistance program.

DBP’s asset base increased by 13.8 percent to P762.17 billion last year. Total deposits, meanwhile,  went up 16.9 percent to P554.63 billion, pushing its net worth or capital base to about P60.29 billion.

“Deposits from the public sector continue to comprise bulk of the bank’s total deposits with a total of P408.72 billion. Our increasing number of deposit accounts has also breached the one million mark, and our sights are trained on a more aggressive financial inclusion campaign,” Herbosa said.

 DBP’s total branch network increased to 129 branches and 11 branch lite units with the number of ATMs reaching 836 many of which are in unbanked areas of the country.

Herbosa vowed to strengthen innovations particularly on information technology infrastructure and customer service interface of the 73-year old bank.

“DBP shall build on the gains that have been attained in the past three years as we continue to explore other opportunities to grow the bank. We are definitely moving from brick-and-mortar to fintech banking,” he said.