DBP grew its net income to P3.1- billion in the first half of 2019, representing an increase of 12.32% from the P2.76-billion reported during the same period last year.
DBP president and chief executive officer Emmanuel G. Herbosa said the improved fiscal position of the bank puts it in a prime position to support the various growth initiatives of the Duterte administration.
“The remarkable financial performance of DBP has fortified its stance and resources to fund the priority development programs of the National Government,” Herbosa said.
The eighth largest bank in the country in terms of assets, DBP lends to strategic growth sectors such as infrastructure and logistics; micro, small and medium enterprises (mSMEs); social services and community development; and the environment.
Herbosa reported that DBP’s gross loan portfolio increased by 19.79% to P368.33-billion from the P307.47-billion posted in the previous year.
“Total assets grew to P667.91-billion from the P617.87-billion last year and net worth increased by 16.33% to P56.78-billion,” Herbosa added. “Our capital adequacy ratio stood at 14.03%, which is higher than the industry average of 12.12%”
DBP also grew its deposit levels to P464.83-billion in the first six months from the P431.65-billion reported in the same period last year, driven by the aggressive marketing and financial inclusion initiatives undertaken through its expanded branch network. DBP has 137 branches that include 10 branch-lite units that cater to underserved and underbanked areas in the country.
Lending to strategic sectors
Herbosa also underscored DBP’s continued support to strategic sectors of the economy such as the infrastructure and logistics sector, which received nearly P143-billion in funding assistance. “Bulk of the funding went to projects in key industries like energy, water resources, manufacturing, transportation, construction, and manufacturing,” he said. He added that most of these projects are located in Davao, Central Visayas, Calabarzon, Central Luzon, and the National Capital Region (NCR). Earlier this year, DBP granted a P650-million loan to the provincial government of Davao Oriental for various projects including the acquisition of heavy equipment for infrastructure projects and the establishment of potable water systems. It has also approved a P600-million loan to the city government of Tuguegarao for the repair of various roads in the city and construction of public market.
DBP also lent P64.4-billion to social infrastructure projects or those involving health care, education, housing, and solid waste management, Herbosa said. DBP funded the recently-inaugurated Parañaque Sewerage Treatment Plant (STP) of Maynilad Water Services, Inc. The new facility removes pollutants from wastewater currently collected from about 100,000 Maynilad customers in Parañaque City before its discharge to the Malabon Creek, which eventually flows out to Manila Bay.
Herbosa said DBP also lent P50.9-billion to the agriculture sector for projects involving forestry, fishing, and wholesale and retail trade of agriculture products. “DBP also provided financing in the amount of P36.8-billion to strategic sectors and industries that adopt environment-friendly processes and technologies,” he added.
DBP’s funding assistance to the mSME sector, meanwhile, stood at P23-billion, with enterprises based in Davao, Northern Mindanao and Soccsksargen among the top recipients of the bank’s development assistance. It recently funded the construction of a tunnel-ventilated poultry building of Amaris Farm in Camarines Norte to promote agribusiness and boost farm productivity in the province.
“Moving forward, DBP will continue to remain true to its developmental mandate by supporting key sectors of the economy,” Herbosa said. “The bank will likewise intensify its drive to promote financial inclusion especially in unbanked and underserved areas of the country in order to remain a relevant and responsive partner of the National Government in promoting inclusive growth particularly in the countryside.”
DBP has recently launched the Lending Initiatives for Sanitation (LINIS) program aimed at assisting public and private entities including local government units and water districts in establishing waste water treatment facilities. It also supports the National Government’s public utility vehicle modernization program through its Program Assistance to Support Alternative Driving Approaches (PASADA) financing program which offers reasonable terms to transport cooperatives looking to acquire brand new, low-emission, and fuel-efficient public utility vehicles. The bank has also opened the Contract to Sell Financing Facility aimed at assisting housing developers to expand their housing projects through DBP’s purchase of receivables covered by a Contract to Sell.