State-owned Development Bank of the Philippines posted a net income of P3.95 billion for the 10-month period ending October 31, 2013, down -12% from the P4.47 billion net income same period in 2013 as trading gains contracted by P2.08 billion from P2.70 billion last year. This was partly offset by net interest income which grew +30% to P8.495 billion through October 2013, an increase of nearly P2 billion over the comparable period in 2013 coming from interest income on investment securities held by the bank and regular loans. Operating expenses increased by +435 million brought about by volume-related expenses including PDIC fees (+P180 million) and higher salaries and personnel expenses (+P229 million).
The P3.95 billion income exceeds the bank’s internal targets due to the increase in interest income and lower cost of funds.
Net loans and other receivables increased by +23% or +P33.879 billion to P183.173 billion from last year’s P149.294 billion contributed by an increase in regular loans (+P31.516 billion) and placements in unquoted debt securities classified as loans (P2.082 billion) .
Deposits climbed by 9% to P237.98 billion vs. last year’s P217.43 billion or a gain of P20.55 billion. In the last comparable period vs. peer banks, the third quarter ending September 30, 2014, DBP’s deposits growth (in total deposits, demand, savings and time deposits) were the highest among universal banks.
For the 9-month period that ended September 30, 2014, the bank’s net income stood at P3.41 billion vs. P4.04 billion at the same period in 2013, as a result of reduced trading income of P492 million vs. P2.49 billion as at September, 2013. This was partly compensated by a gain in interest income which increased by +P337 million to P7.60 billion vs. P7.26 billion as of September 30, 2013 and lower cost of funds for the same period compared to previous year.
The bank’s developmental loan portfolio surged to P112.15 billion as of September 30, 2014, representing 83.6% of its total loan portfolio of P134.2 billion.