DBP income soars in Q3

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) saw its nine-month net income soar by nearly three-fold to P5.35 billion on the back of intensified lending activities.

In a statement, DBP said its net income from January to September  jumped by 177 percent to P5.35 billion from P1.93 billion in the same period last year.

DBP president and CEO Emmanuel Herbosa said the increase was driven by the growth in the bank’s total loans to borrowers as well as the continued rise in net interest income.

As of the end of the third quarter, DBP’s total loans reached P504.8 billion, up 15 percent from P439.3 billion last year as its lending accelerated with the reopening of the economy.

At least P270 billion or more than half of total loans went to the infrastructure and logistics sector as  the bulk of the projects are located in Metro Manila, Central Visayas, Central Luzon, Calabarzon, Eastern Visayas and Davao.

Some P103.7 billion or 20.5 percent of the bank’s loan portfolio financed social infrastructure and community development projects.

Another P74.46 billion was earmarked for projects in finance and insurance, manufacturing, wholesale and retail trade, accommodation, and food services.

Likewise, the bank provided P54.35 billion in loans for environment-related projects, P48.24-billion for the agriculture sector, and P30.3 billion for micro, small and medium enterprises.

Further, DBP’s net income before provisions stood at P10.62 billion which was largely weighed down by provision for credit losses at P4.25 billion and income taxes at P1.02-billion.

With the third quarter performance, the bank effectively exceeded its recalibrated 2022 net income target of P3.85 billion.

DBP is the eighth largest bank in the country in terms of assets. It provides credit support to four strategic sectors of the economy namely, infrastructure and logistics, MSME, environment, and social services and community development.