State-owned Development Bank of the Philippines’ (DBP) net income for the first six months of 2023 rose 60 percent to hit P4.42-billion, compared to the P2.76-billion that the Bank posted during the same period last year, a top official said.
DBP President and Chief Executive Officer Michael O. de Jesus said the increase was fueled largely by a hike in foreign currency profits, on its foreign books, and non-recurring gains from the disposal of real and other properties acquired.
“Notwithstanding the one-time gains, overall the Bank’s performance in the first half of the year demonstrates its resilience as an institution and its readiness to support the National Government’s strategic initiatives to foster economic growth and financial stability,” de Jesus said.
DBP is the eighth largest bank in the country in terms of assets and remains a relevant and reliable partner of the National Government in serving the financing needs of strategic and critical economic sectors, particularly infrastructure and logistics, micro, small and medium enterprises, social services, and the environment.
De Jesus reported that the Bank is on track to meet its full year income target of P5.20-billion.
He said that the Bank loans for infrastructure and logistics accounted for the bulk of outstanding exposure at P281.59-billion followed by loans to social infrastructure and community development at P110.03-billion.
“A significant chunk of our loans or about 55.5% percent of the Bank’s total portfolio of P507-billion was released to bankroll public infrastructure under the banner of the National Government’s “Build Better More” program, majority of which are in the National Capital Region, Central Visayas, Davao, and Central Luzon,” de Jesus said.
From January to June this year, DBP also provided P35.38-billion in loans for the agriculture sector, P79.93-billion for other developmental loans such as financial and insurance activities, including manufacturing, wholesale and retail trade, and food services, P54.43-billion for environment-related projects, and P30.23-billion to support micro, small and medium enterprises.
De Jesus said that as of end-June this year, the Bank posted a four percent growth in total deposits to P760-billion due to higher term and non-term deposits and registered a modest capital increase of eight percent to P83.64-billion from the P77.54-billion recorded during the same period in 2022.
He said the Bank has maintained its solid financial position even as it affirms its full support to President Ferdinand Marcos Jr.’s call to ramp up support to critical investment areas such as physical connectivity, water resources, agriculture, health, digital connectivity and energy.
“DBP’s position as the country’s infrastructure bank is closely aligned with our President’s vision of catalyzing progress through economic efficiency through well-planned and inclusive infrastructure development,” de Jesus said.