DBP’s loan portfolio up, earnings down during height of pandemic

The Development Bank of the Philippines (DBP) was able to sustain the growth of its loan portfolio despite the COVID-19 pandemic, releasing P374.8 billion in loans to borrowers from January to September.

In a statement, DBP president and CEO Emmanuel Herbosa said this reflected a 13.9-percent increase from the P329.1 billion disbursed during the same period in 2019.

Loan releases amounting to P175.7 billion went to the infrastructure and logistics sector; followed by loans to social services worth P77.2 billion; environment projects worth P43.1 billion; and micro, small and medium enterprises worth P26.5 billion.

“DBP broadened its support to priority industries as we throw our full commitment to rebuild, recover and revitalize the economy that has been battered by the pandemic and the series of calamities,” he said.

DBP is the seventh largest bank in the country in terms of assets and provides loans to strategic sectors such as infrastructure and logistics, small and medium enterprises, social services and community development and the environment.

Over the past nine months, the state-owned bank has played a key role in the rehabilitation efforts of both public and private institutions affected by the pandemic.

Herbosa also said total deposits as of end-September rose by 50 percent to P754.9 billion from the P502 billion recorded during the same period in 2019, buoyed largely by the 58-percent rise in term deposits and 22-percent increase in current and savings accounts.

This makes the bank’s deposit growth rate one of the highest in the industry this year.

DBP has a network of 129 branches including 11 branch units, which are mostly situated in underserved areas of the country. Its automated teller machines total 836, most of which are located in remote and unbanked areas.

Herbosa said total assets climbed to P945.4 billion from January to September this year, showing a 34.9-percent increase from the P700.9 billion during the same period last year.

Total capital grew by 9.5 percent to P64 billion as of end-September this year, augmented by the P6-billion infusion from the national government under the Bayanihan to Recover As One Act.

Its capital adequacy ratio stood at 13.8 percent, higher than the industry average of 12.4 percent.

DBP executive vice president Marietta Fondevilla said the bank’s net income as of end-September reached P3.24 billion, down 26.7 percent compared with the P4.42 billion recorded in the same period in 2019.

She said the decline was caused mainly by higher provisioning for credit losses and income taxes as well as an increase in administrative expenses, which went mostly to pandemic-related response especially by its field units. INQ