DBP net income surged 60% in H1

Development Bank of the Philippines (DBP) facade. (Photo from DBP facebook page)

MANILA  -Development Bank of the Philippines (DBP) saw its net income jumped by 60 percent to hit P4.42 billion in the first semester this year from P2.76 billion in the same period last year, thanks partly to non-recurring gains.

DBP president and chief executive Michael de Jesus said in a statement their first-half performance was also driven largely by an increase in foreign currency profits, on its foreign books, and the disposal of real and other properties acquired.

De Jesus said the state-run bank is on track to meet its full-year income target of P5.2 billion. As of the first six months, the bank has already achieved 85 percent of the year-end goal.

He added that DBP lending activities for infrastructure and logistics accounted for the bulk of outstanding exposure at P281.59 billion followed by loans to social infrastructure and community development at P110.03 billion.

“About 56 percent of the bank’s total portfolio of P507 billion was released to bankroll public infrastructure under the banner of the national government’s ‘Build Better More’ program, majority of which are in the National Capital Region, Central Visayas, Davao, and Central Luzon,” de Jesus said.

Also, from January to June this year, DBP provided P35.4 billion in loans to the agriculture sector; P79.9 billion for other developmental loans such as financial and insurance activities as well as manufacturing, wholesale and retail trade, and food services; P54.4 billion for environment-related projects; and P30.2 billion to support micro, small and medium enterprises.

De Jesus said that as of the end of June, DBP posted a 4-percent growth in total deposits, which reached P760 billion. This was attributed to higher term and non-term deposits.

Further, DBP recorded a “modest increase” in capital of 8 percent to P83.6 billion from the P77.5-billion recorded during the first semester of last year.

“Notwithstanding the one-time gains, overall the bank’s performance in the first half of the year demonstrates its resilience as an institution and its readiness to support the national government’s strategic initiatives to foster economic growth and financial stability,” de Jesus said.

The CEO said DBP has maintained a solid financial position to fully support the Marcos administration’s call to ramp up support to critical investment areas such as physical connectivity, water resources, agriculture, health, digital connectivity and energy.

“DBP’s position as the country’s infrastructure bank is closely aligned with our President’s vision of catalyzing progress through economic efficiency through well-planned and inclusive infrastructure development,” de Jesus said.