DBP 2024 earnings highest in a decade
MANILA, Philippines — The Development Bank of the Philippines (DBP) posted its largest profit in 10 years in 2024 on the back of strong growth in its lending activities, allowing the state-owned lender to smash its target earnings.
In a statement on Thursday, the state-run bank said it netted P7.1 billion last year, representing a 20 percent growth from 2023.
Not only did it record its highest net income in the past decade, DBP also crushed its target profit of P5.5 billion by 29 percent.
READ: BSP: Extension of regulatory relief won’t be easy for DBP
In a statement, Michael de Jesus, company president and CEO, attributed the bank’s financial performance to “ramped up lending activities to key sectors.”
“DBP’s resurgent performance in 2024 is a clear testament that it remains a strong and stable government financial institution that is greatly capable of funding the priority programs of the national government,” de Jesus said.
Income from its lending operations went up by 6 percent to P31.7 billion amid a high interest rate environment that boosted the margins of the local banking sector.
Despite the tight financial conditions, the bank said its loan portfolio had grown by 5 percent to P536.8 billion.
Out of the amount, 61 percent or P326.48 billion went to the infrastructure and logistics sector, with projects mostly found in the National Capital Region, Metro Davao, Central Visayas and Eastern Visayas.
Meanwhile, P99.33-billion was used to finance projects for social infrastructure and community development, while P55.12-billion went to projects for the environment.
DBP said it also lent P26.94 billion to micro, small and medium enterprises.
The higher borrowing costs likewise pushed up DBP’s revenues from its treasury operations by 2 percent to P14.9 billion.
Beyond lending, DBP said it exceeded its non-interest income target by 81 percent to P4.04-billion on account of higher earnings from bank fees, foreign exchange transactions and trading gains.
