State-owned Development Bank of the Philippines (DBP) continues to broaden its support for the developmental projects of key economic sectors with
P414.72-billion in total loans to borrowers as of end-March 2021, up 12 percent from the P371.01-billion recorded for the same period last year, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said that 53 percent of the loans went to infrastructure and logistics projects at
P218.65-billion; followed by loans to social services and community development initiatives, P82.56-billion; environmental projects, P44.72-billion; and micro, small and medium enterprises (mSMEs), P32.79-billion.
“The increase in loans to priority sectors reflects the bank’s firm commitment to ensure the steady and gradual recovery of the national economy, despite the looming uncertainties of the current public health emergency,” Herbosa said.
DBP is the sixth largest bank in the country in terms of assets and has been designated as the country’s Infrastructure Bank by the National Government. It has a branch network of 129 full-service branch offices including 11 branch lite units situated mostly in underserved and far-flung areas of the country.
Herbosa said DBP’s total assets grew by a hefty 45 percent to
P1.10-trillion as of first quarter this year compared to the same period in 2020, attributed mainly to intensified deposit-taking activities, higher investments, and deposits to the Bangko Sentral ng Pilipinas.
He said overall deposits grew a robust 57 percent to
P879.83-billion for the first three months of the year from the P559.68-billion recorded for the same period in 2020, driven by renewed public confidence in the stability of DBP as a strong and stable government financial institution.
“For the first three months to March, DBP’s total equity grew by 26 percent to
P76.64-billion from the previous year’s P61.1-billion, caused principally by the P12.5-billion capital infusion from the National Government under the Bayanihan to Recover as One Act (Bayanihan 2) coupled with increased retained earnings,” Herbosa said.
The government’s capital infusion was mobilized largely through the bank’s DBP Rehabilitation Support Program on Severe Events (RESPONSE), which provided credit assistance to about 29 borrowers amounting to
P6.4-billion while restructuring loans of 41 borrowers with a loan portfolio of P5.7-billion. Under the DBP RESPONSE MSME Recovery Program, the bank also provided assistance to 13 borrowers with total loan approvals of P2.3-billion.
Herbosa said DBP’s net income for the first quarter of the year reached
P550-million, down by 62 percent from the P1.46-billion registered during same period last year, due to higher operating expenses, income taxes and lower net interest income.
He said given the positive socio-economic outlook for the rest of the year, DBP will continue to capitalize on its hefty deposit base, its additional equity from Bayanihan 2, and its solid fiscal position to continue to provide sustained support to both the government and various key industries as the country slowly adjusts to the challenges and demands of the new socio-economic environment.
“We shall continue to leverage on our recent financial gains such as being a trillion-peso bank and utilize our expanded asset base to create a myriad of viable and sustainable set of opportunities for our clients and for our fellow Filipinos,” Herbosa said.