‘Revitalized’ DBP to funnel more loans into infra projects
The Development Bank of the Philippines on Monday said it will lend more of its funds to finance big ticket infrastructure projects in line with the Duterte administration’s thrust of rebuilding the country’s creaky transportation and public service facilities.
In a press briefing, DBP president and CEO Cecilia Borromeo said that, in the process of fund these undertakings, the state-owned lender wants to grow its gross loan portfolio to P306.6 billion this year, from the end-2017 level of P293.47 billion.
“There are many infrastructure projects that are on our plate, and we want to be involved in these projects either by lending to them or through financial advisory roles,” she said, explaining that the move is meant to “revitalize” the bank and give it renewed focus on its developmental mandate.
DBP has so far lent a total of P76.23-billion to infrastructure and logistics projects, representing nearly 35 percent of its loaned out funds of P219.93-billion.
“We are very excited to have been appointed to help usher in the ‘golden age for infrastructure’ in the country,” Borromeo said. “We are intensely looking forward to helping bridge the country’s infrastructure gap, and to help fund ongoing and proposed major infrastructure projects, which are vital for sustaining high and inclusive growth.”
The shift in the bank’s lending emphasis is also in compliance with the marching orders issued by Finance Sec. Carlos Dominguez III who said last year that he wants DBP to spearhead the financing aspect of the administration’s infrastructure program.
The DBP chief stressed that, amid the rush to finance infrastructure projects that are initiated by the government at either the national or local levels, the bank will continue to emphasize prudential lending measures to maintain its asset quality.
On Monday, the bank reported that it posted a net income of P5.1-billion in 2017 representing a 21.43-percent increase from the P4.2-billion recorded in 2016 spurred largely by a steady growth in its loan portfolio.
“There are a lot of positive things going on in our institution,” Borromeo said. “We are experiencing robust growth in our financials. Our development side is kicking into high gear. We have tailored our programs to make us more relevant in the national government’s scheme of things.”
DBP’s gross loan portfolio of P293.47-billion at the end of 2017 represented a 21.82-percent increase from the P240.9 billion recorded in the previous year. Total assets expanded by 11.43 percent to P597.41 billion, and deposits grew from P356.24 billion to P412.36 billion, with government deposits accounting for about 74 percent of total. /je
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