The Development Bank of the Philippines (DBP) announced in a media advisory recently that it has posted a net income of PHP5.35 billion in the first nine months of 2022, showing significant growth of 177 per cent compared to the PHP1.93 billion it recorded in the same period last year.
This developed as the state-owned bank continued to intensify its lending activities to key sectors of the country.
“DBP’s resurgent performance this year attests to its stability as a government financial institution and reflects the optimism in the country’s economic prospects as we emerge from a downturn exacerbated by the pandemic,” beamed Emmanuel G. Herbosa, President and Chief Executive Officer of DBP.
Herbosa added that the increase in DBP’s net income was driven mainly by the growth in its total loans to borrowers as well as the continued rise in net interest income.
DBP is currently the 8th largest bank in the country in terms of assets. It provides credit support to four key sectors of the economy – micro, small and medium enterprises (MSMEs); infrastructure and logistics; the environment; as well as social services and community development.
Full reopening of the economy helped accelerate lending
In the same media advisory, Herbosa explained that the DBP’s total loans to borrowers from January to September 2022 reached PHP504.8 billion, reflecting a 15 percent growth from the PHP439.30 billion recorded last year, on the back of accelerated lending boosted by the full reopening of the economy.
He said PHP270 billion or 53.49 percent of total loans were allocated for the infrastructure and logistics sector, with the bulk of the projects situated in the National Capital Region, Central Visayas, Central Luzon, Calabarzon, Eastern Visayas and Davao.
“DBP’s support for social infrastructure and community development projects totaled PHP103.71 billion, representing 20.5 percent of its total loan portfolio,” Herbosa said.
“The bank also provided PHP54.35 billion in loans for environment-related projects, PHP48.24 billion for the agriculture sector, PHP30.30 billion for MSME sector and about PHP74.46 billion for projects in finance and insurance, manufacturing, wholesale and retail trade, accommodation and food services,” he added.
For her part, DBP Executive Vice President for Operations Fe Susan Prado said the bank’s net income before provisions stood at PHP10.62 billion which was largely weighed down by provisions for credit losses at PHP4.25 billion and income taxes at PHP1.02 billion.
She said DBP’s strong financial performance in the past quarter has enabled it to exceed its recalibrated 2022 net income target of PHP3.85 billion and solidify its position as one of the top performing banks in the country today.
“Beyond the numbers, DBP’s financial standing mirrors the general trend for the Philippine economy in general, which is breaking the odds and have performed considerably well despite the challenges and adversities,” Prado said.