September 29, 2023

The Development Bank of the Philippines broadened its support to priority sectors in the first quarter of the year, disbursing a total of P371 billion in loans to borrowers, showing a 30.7 percent increase from the P284B 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 45.4 percent or P168.4B; followed by loans to social services, P75.7B; environmental projects, P42.1B; and micro, small and medium enterprises, P27.33B.

Herbosa attributed the increase in its loan portfolio to the aggressive lending activities by its 30 lending units, which were established in 2018 to fast-track the credit application process and streamline client servicing.

Herbosa said total deposits grew by 25.49 percent as of the first quarter of the year to P559.68B from the P446B reported in the same period last year, backed by aggressive deposit generation activities.

DBP also installed additional automated teller machines for the first three months to March in Clarin, Misamis Oriental bringing the bank’s total ATM network to 837.

“At present, we have 129 branches and 11 branch-lite units spread across the country and we hope to reach more missionary areas by the end of the year,” Herbosa said.

Herbosa reported that DBP’s gross income reached P8.45B for the first three months of the year, up by 9.5 percent from the P7.72B reported during the same period last year.

He said the bank’s total assets grew by 20 percent as of the first quarter of the year to P763.24B from the P635.6B registered as of the same period in 2019.

“Our capital adequacy ratio stood at 13.03 percent as of end of March 2020, which is above BSP’s minimum requirement of 10 percent.”

Herbosa reported that the bank’s net income for the first quarter reached P1.46B, slightly down by 7.56 percent from the P1.57B recorded during the same period last year, due mainly to higher provisioning for credit losses and income taxes.

“DBP is currently reviewing its financial targets in light of this global pandemic,” Herbosa said adding that the bank is calibrating its programs to support the national government’s efforts to stimulate the economy after quarantine restrictions have been relaxed.

“We are ready to provide the necessary funding support for key businesses and industries in order to stave off possible recessional effects of this pandemic,” Herbosa said. – Press release