DBP profit up by 19%

State-run Development Bank of the Philippines (DBP) this week reported a significant growth in the first half of the year as funding costs dropped and interest revenues rose.

In a statement, DBP said it was on track to meeting its full-year profit goals as earning assets rose, and deposits expanded to help bring down the bank’s funding costs.

In the six months to June, DBP said profits grew 19 percent year-on-year to P2.35 billion. This translates to an annualized return on equity (ROE) of 11.04 percent, “and makes DBP on track to meeting its full year profit target for 2015,” it said.

Interest income from loans posted a 20-percent growth or a P626-million increase. Other core income items also grew over the same period last year: interest income on investments was higher by P122 million, gains on investment securities rose by P158 million, foreign exchange gains were higher by P840 million and dividend income, higher by P166-million.

Total assets climbed by 8 percent to P455.398 billion, mainly cash and due from other banks (up 37 percent to P29.122-billion) and investments (12 percent to P17.646 billion).

Loans and other receivables contracted by 2 percent or P3.715 billion. Other assets were lower by 105 percent or P8.198 billion.