DBP net income jumps 17% year-on-year to P1.23-billion

State-owned Development Bank of the Philippines’ (DBP) net income rose 17 percent to hit P1.23-billion in the first three months of 2023, compared to the P1.05-billion that the Bank posted during the same period last year, a top official said.

DBP President and Chief Executive Officer Michael O. de Jesus said higher interest income from expanded lending activities to critical sectors of the economy as a result of increased economic activity fueled the double-digit growth in its bottomline.

“DBP’s resurgent financial performance in 2023 is an attestation of its stability as a government financial institution,” de Jesus said. “We shall continue to build on this growth trajectory and carry on our mandate of being a catalyst of growth in areas where economic activities are limited and most needed.”

DBP is the eighth largest bank in the country in terms of assets and remains a relevant and reliable partner of the National Government in serving the financing needs of strategic and critical economic sectors, particularly infrastructure and logistics, micro, small and medium enterprises, social services, and the environment.

De Jesus said DBP has maintained its strong fiscal position, registering 50 percent increase from its first-quarter net income target of P820-million with gross loan portfolio reaching P547-billion, which is up slightly by two percent from the P539-billion recorded during the same period in 2022.

He said that as of end-March this year, loans for infrastructure and logistics totaled P285.235-billion, while the outstanding portfolio for social infrastructure and community development amounted to P107.842-billion.

“Bulk of our releases or about 55.2 percent of the Bank’s loan portfolio were released to bankroll infrastructure development initiatives in support of the National Government’s “Build Better More” program, majority of which are located in the National Capital Region, Central Visayas, Davao, and Central Luzon,” de Jesus said.

De Jesus said the Bank also provided P35.82-billion in loans for the agriculture sector, P78.54-billion for other developmental loans such as financial and insurance activities, including manufacturing, wholesale and retail trade, and food services, P54.166-billion for environment-related projects, and P30.604-billion to support micro, small and medium enterprises.

He said that in spite of the Bank’s increase in provision for credit losses by P765-million, the Bank exceeded its target income for the first quarter of 2023. De Jesus said that DBP also registered a modest capital increase of four percent to P80.179-billion from the P76.823-billion recorded during the same period in 2022.

“DBP remains on track to keep its position as one of the most relevant and stable government financial institutions in the country,” de Jesus said.