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Growth in lending hikes DBP net income in first nine months of 2018


State-owned Development Bank of the Philippines’ (DBP) net income reached P4.49-billion for the first nine months of the year reflecting a 13% growth from the P3.98-billion during the same period in 2017, a top official said.

DBP president and chief executive officer Cecilia C. Borromeo said the bank’s financial performance was driven largely by the robust growth in lending activities as well as its revitalized branch operations.

“DBP has surpassed most of its fiscal targets for the year, and at the same time, remains financially strong to support the various development initiatives of the government,” she said.
DBP is the eighth largest bank in the country in terms of assets and is the designated infrastructure bank by the National Government. The bank 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.
Borromeo said that DBP’s net income represents a 111% realization rate of its nine-month target of P4.06-billion, adding that: “…the bank has already realized 81% of its annual target of P5.56-billion for the year…”
She said total gross income also reached P18.85-billion for the first nine months compared to P16.54-billion in 2017, while total assets jumped by 13% to P632.93-billion from the P557.84billion during the same period last year.
“DBP’s capital adequacy ratio stands at 14.51% which is way higher than the industry average of 10%, while common equity Tier 1 Ratio, which consists mostly of common stock, was recorded at 10.96%,” Borromeo said.

Expansion of lending activities
Borromeo said that DBP’s loan portfolio stood at P250.3-billion, which is 98% of its year-end target of P256.6-billion, with new loan approvals recorded at P85.9-billion, or 144% more than its target of P59.6-billion.

“By priority thrust, the infrastructure and logistics sector received the biggest chunk of DBP assistance for the first three quarters of 2018 with a total loan portfolio of P104.5-billion which is P4.5 billion more than our year-end target of P100-billion,” Borromeo said.
DBP has also exceeded its financial targets for the social services and MSME sectors with allocations of P26.2-billion and P15-billion as against the full-year targets of P25-billion and P10.1-billion, respectively, Borromeo said.

She said loans to borrowers grew by 22% to reach P246-billion from P202-billion during the same period last year and surpassing the full year goal of P243.8-billion.

Growth in deposits
Borromeo said total deposits for the first nine months reached P447.83-billion, 22% higher than the P367.3-billion for the same period last year with double-digit growths in the following areas: Northern Luzon, 29.3%; South Luzon, 27.6%; Metro Manila, 25.9%; Northern Mindanao, 25%; and Central and Eastern Visayas, 23.3%.

“DBP’s on-going deposit drive has netted more than 93,500 new accounts while allowing the bank to surpass our entire year target of P437-billion,” she said.
DBP has also installed 154 new automated teller machines (ATMs) this year as part of its efforts to expand its ATM network, bringing the total to 756 ATMs in strategic sites nationwide.
Borromeo said it will continue to put up more ATMs especially in underserved areas of the country in support of the financial inclusivity agenda of the National Government.