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DBP increases loan portfolio to priority sectors

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State-owned Development Bank of the Philippines (DBP) broadened its support to priority sectors in the third quarter of the year, disbursing a total of P329.1-billion in loans to borrowers, showing a 33.8 percent increase from the P246-billion recorded during the same period last year, a top official said.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said bulk of the bank’s loan portfolio went to the infrastructure and logistics sector which accounted for nearly 40 percent of loan releases or P152-billion, followed by loans to social services P67.33-billion, environmental projects P44.6-billion, and micro, small and medium enterprises (mSMEs), P24.6-billion.

“DBP will continue with its drive to promote economic inclusion and remain a relevant and responsive partner of the National Government in promoting sustainable development particularly in the countryside,” Herbosa said.

DBP is the eighth largest bank in the country with assets totaling P700.9-billion as of end-September this year and has been designated as the country’s infrastructure bank by the National Government.

Herbosa attributed the increase in its loan portfolio to the aggressive lending activities by its 22 lending centers, which were established in 2018 to fast-track the credit application process and streamline client servicing.

He said majority of the projects financed under the infrastructure and logistics sector comprise energy, water resources, information and communication technology, transportation, construction, and manufacturing initiatives, and are located in Central Luzon, Davao, Central Visayas, Cavite-Laguna-Batangas-Rizal (CALABARZON), and the National Capital Region (NCR).

Herbosa said that DBP-funded social infrastructure projects involved health care, education, housing, and solid waste management initiatives, most of which were concentrated in underserved provinces and municipalities, adding that “…majority of its

assistance for environmental projects were located in CALABARZON, Central Luzon, Central Visayas, Davao, and NCR…”

Higher deposit base

Herbosa said total deposits grew by 12.1 percent for the first nine months of the year to P502-billion from the P447.8-billion reported in the same period last year, backed by aggressive deposit generation activities.

He said DBP added 45 additional automated teller machines (ATMs), bringing its total ATM network to 833 as of end-September this year.

“At present, we have 137 branches that include 10 branch-lite units spread across the country and we hope to reach more missionary areas by the end of the year, “Herbosa said.

On track to meet full year target

Herbosa reported that DBP’s gross income reached P24.2-billion in the third quarter of the year, up by 28.6% from the P18.9-billion reported during the same period last year.

He said the bank’s total assets showed a 10.7% growth for the third quarter of the year to P700.9-billion from the P632.9-billion registered for the same period in 2018 while its net worth rose by 17.01% to P58.5-billion.

“Our capital adequacy ratio stood at 14.7% for the period ending September 2019, which is higher than the industry average of 12.2%.”

Herbosa reported that the bank’s net income for the third quarter reached P4.42-billion, down slightly by 1.56 percent from the P4.49-billion recorded during the same period last year, due mainly to higher provisions for impairments losses and taxes and operating expenses.

“DBP remains confident of reaching its financial targets for this year,” Herbosa said. “We have already achieved 75% of our net income target for 2019 due to a realization rate of 103% on our net income target for the third quarter.”

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