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DBP 2018 net income hits P5.72-billion

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State-owned Development Bank of the Philippines (DBP) reported that its full-year income for 2018 reached P5.72-billion reflecting a 4.19% increase from the P5.49-billion it earned in 2017.

DBP president and chief executive officer Emmanuel G. Herbosa attributed the increase to the growth of its loan portfolio as well as the expansion of its deposit generation activities especially in the countryside.

“DBP ramped up its lending activities last year in support of the administration’s goal of increasing investments in infrastructure to boost the economy and promote inclusive growth especially in areas outside of traditional urban centers,” Herbosa said.

DBP is the eighth largest bank in the country in terms of assets and has been designated as the Infrastructure Bank by the National Government.  It provides loans to four key sectors of the economy  —  infrastructure and logistics, micro, small and medium enterprises (MSMEs), social services and community development, and the environment.

Herbosa said DBP’s total loan portfolio stood at P328.93-billion, up by 12% from the P293.82-billion recorded in 2017 with about 33.6 percent or P110.52 billion allocated for the infrastructure and logistics sector.

He said total assets rose by 10% to reach P669.75-billion compared to the P592.36-billion recorded in the previous year, adding that “…DBP is on track to achieve its goal of becoming a trillion-peso bank by 2022…”

Herbosa said DBP broadened funding support for the social services sector such as the construction of hospitals and schools nationwide with a total loan portfolio of P41.31-billion.

“DBP also lent P21.9-billion to the micro, small, and medium enterprises (MSME) sector including retail loans and loans to participating financial institutions and approved a total of P10.34-billion in loans for environmental projects,” he said.

Herbosa added that new loan approvals for 2018 reached P122.58-billion, or a 206% realization rate of its full-year target of P59.63-billion.

Hike in Deposits

Herbosa said DBP hiked its deposit base by 15% to P474.44 billion from P412.36-billion in 2017, pushing its net worth or capital base to about of P51.16-billion as of end of 2018.

“Deposits from the public sector continue to comprise bulk of the bank’s total deposits with a total of P305.97-billion which is reflective of the increased economic activity especially by the local government units,” Herbosa said.

DBP also expanded its branch network and convenience banking channels in 2018, opening additional nine branch lite units and 152 automated teller machines by the end of 2018.

“At present, DBP’s total branch network has increased to 137 branches with the number of ATMs reaching 789 many of which are in unbanked areas of the country,” Herbosa said.

He said DBP also opened offices in three unbanked and underserved locations — a branch in Dolores in Eastern Samar and branch-lite units in Siaton, Negros Oriental and Banga, South Cotabato.

Herbosa credited his predecessor, Cecilia C. Borromeo, for steering DBP to an improved fiscal position in 2018 as he vowed to strengthen innovations particularly on IT infrastructure and customer service interface of the 72-year old bank.

“DBP shall build on the gains that have been attained in the past three years as we continue to explore other opportunities to grow the bank,” he said.

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