DBP 1st half net income surges to P2.76-B

State-owned Development Bank of the Philippines’ (DBP) net income for the six months of 2022 surged to P2.76-billion, showing a hefty increase of 131% from the P1.19-billion recorded during the same period last year, as the Bank ramped up lending activities in support of the National Government’s economic recovery program, a top official said.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said the growth of the Bank’s net income is attributable mainly to the significant increase in loan volume and interest income and lower cost of funds.

“DBP re-affirmed its commitment to help hasten the economic recovery of the country by intensifying its development lending activities,” Herbosa said. “Its solid financial performance in the first half of the year puts it in a prime position to bolster its support to the various priority programs of the National Government”.

DBP is the sixth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises (MSMEs); the environment; and social services and community development.

Herbosa reported that the Bank’s total loans from January to June 2022 grew to P494.15-billion, reflecting a 13% growth from the P436.02-billion recorded last year, adding that “…about 55.33% or P273.43-billion were released to bankroll projects in the infrastructure and logistics sector, majority of which are located in the National Capital Region, Central Visayas, and Central Luzon…”

He said DBP’s outstanding loans for social infrastructure and community development projects as of end June 2022 totaled P98.49-billion, while outstanding portfolio for other developmental initiatives covering finance and insurance, manufacturing, wholesale and retail trade, accommodation, and food services as of same period amounted to P65.20-billion.

“The Bank also provided P48.69-billion in loans for the agriculture sector in support of the government’s food sufficiency program, as well as P52-billion for environment-related projects and P31.58-billion for MSME sector,” Herbosa said.

Herbosa said total deposits reached P731.90-billion, which represent 82% of the P895-billion target by year-end, with low-cost deposits increasing by P9-billion.

He said the Bank opened two more branch-lite units in Aroroy, Masbate and Jose Panganiban in Camarines Norte for the first half of the year, expanding DBP’s branch network to 145 including 14 branch lite units, which are situated mostly in underserved and far-flung areas of the country.

DBP Executive Vice President for Operations Fe Susan Z. Prado attributed the rise in DBP’s first half net profit to the 29% increase in gross margin which reached P3.09-billion, despite being weighed down by the hefty provision for credit losses totaling P2.8-billion, with net income before provisions reaching P6.41-billion or a year-on-year increment of 85%.

She said the country’s positive economic outlook buoyed by the gradual and calibrated opening of the economy bodes well for the Bank as it looks to capitalize on increased business activities for the remainder of 2022.

“DBP’s first half income already represents a 72% realization rate of its P3.85-billion readjusted target for the year and the Bank is on track to keep its position as one of the most financially stable government financial institutions in the country,” Prado said.