Development Bank of the Philippines (DBP) facade–Photo from DBP facebook page
MANILA, Philippines — President Ferdinand Marcos Jr. adjusted the dividend rate of Development Bank of the Philippines (DBP) for 2022 in a new executive order released on Friday.
According to a Palace statement, Marcos issued Executive Order (EO) No. 48 cutting DBP’s dividend rate to zero from 50 percent in a bid to strengthen the bank’s capital position and comply with Bangko Sentral ng Pilipinas regulations.
“Pursuant to Section 5 of RA (Republic Act) No. 7656, and in the interest of the national economy and general welfare, the percentage of net earnings to be declared and remitted by DBP to the National Government for CY 2022 is hereby adjusted from 50 percent of its annual net earnings to zero percent,” read the EO, which was signed by Executive Secretary Lucas Bersamin on Nov 28.
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Republic Act No. 7656 requires all government-owned or -controlled corporations (GOCCs) to declare as dividends and remit to the national government 50 percent of their annual net earnings.
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A section of the law, however, allows the President to adjust the percentage of annual net earnings that GOCCs are required to remit to the national government upon the recommendation of the secretary of finance.
The cut in DBP’s dividend rate was recommended by Finance Secretary Benjamin Diokno.
This, however, is applicable only to DBP’s 2o22 earnings.
In December last year, the President made the same move, exempting DBP from remitting half of its 2021 net earnings to the national government.