A top official of the Development Bank of the Philippines (DBP) announced recently that the state-owned bank was able to generate P4.42-billion net income for the first six months of this year, a 60% increase in profit compared to the P2.76-billion that the bank posted in the same period last year.
IMAGE CREDIT: https://www.dbp.ph
According to DBP President and Chief Executive Officer Michael O. de Jesus, the increase was fueled by a hike in foreign currency profits on its foreign books and non-recurring gains from the disposal of real estate and other properties the bank had acquired.
“Notwithstanding the one-time gains, overall, the bank’s performance in the first half of the year demonstrates its resilience as an institution and its readiness to support the national government’s strategic initiatives to foster economic growth and financial stability,” de Jesus said in a press statement.
DBP is currently the eighth-largest bank in the country in terms of assets.
It 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-scale enterprises, social services, and the environment.
DBP supports the “Build Better More” program of the gov’t
IMAGE CREDIT: https://www.dbp.ph
In the same press statement, De Jesus reported that the bank is on track to meet its full-year income target of P5.20-billion.
He also said that the bank loans for infrastructure and logistics accounted for the bulk of outstanding exposure at P281.59-billion followed by loans to social infrastructure and community development at P110.03-billion.
“A significant chunk of our loans or about 55.5% percent of the bank’s total portfolio of P507-billion was released to bankroll public infrastructure under the banner of the national government’s “Build Better More” program, majority of which are in the National Capital Region, Central Visayas, Davao, and Central Luzon,” de Jesus further said.
From January to June this year, the DBP also provided P35.38-billion in loans for the agriculture sector, P79.93-billion for other developmental loans such as financial and insurance activities, including manufacturing, wholesale and retail trade, and food services, P54.43-billion for environment-related projects, and P30.23-billion to support micro, small and medium enterprises.
De Jesus also reported that as of end-June this year, the bank was able to post a four percent growth in total deposits (worth P760-billion) due to higher term and non-term deposits. The bank also registered a modest capital increase of P83.64-billion, an eight percent increase compared to the P77.54-billion it recorded for the same period last year.
He said the bank has maintained its solid financial position even as it affirms its full support to President Ferdinand Marcos Jr.’s call to ramp up support to critical investment areas such as physical connectivity, water resources, agriculture, health, digital connectivity, and energy.
“DBP’s position as the country’s infrastructure bank is closely aligned with our President’s vision of catalyzing progress through economic efficiency through well-planned and inclusive infrastructure development,” de Jesus said.